LatinNews Daily - 21 September 2020

* Chile-based Latam Airlines Group has announced that its amended proposal to secure US$2.45bn debtor-in-possession (DIP) financing has now been approved by a New York bankruptcy court. Its previous US$2.2bn proposal had been rejected by the same court on 14 September. According to Latam’s statement, the new proposal eliminates an equity swap option, among other changes. Latam welcomed the approval as a “very important step for the sustainability of the group”, adding that “now we begin a new phase, working towards the presentation of our reorganisation plan as part of the Chapter 11 process”. On 26 May, having suffered the loss of 95% of their passenger business due to the impact of the coronavirus (Covid-19) pandemic, Latam filed for bankruptcy under Chapter 11 protection in the US. Chile’s finance ministry has said it considers Latam to be a “strategic company”, as one of the country’s largest employers.

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