• ITVI.USA
    15,529.670
    -8.590
    -0.1%
  • OTRI.USA
    25.060
    -0.050
    -0.2%
  • OTVI.USA
    15,490.640
    -7.950
    -0.1%
  • TLT.USA
    2.720
    0.020
    0.7%
  • TSTOPVRPM.ATLPHL
    2.550
    -0.030
    -1.2%
  • TSTOPVRPM.CHIATL
    3.030
    -0.080
    -2.6%
  • TSTOPVRPM.DALLAX
    1.450
    0.150
    11.5%
  • TSTOPVRPM.LAXDAL
    2.910
    -0.030
    -1%
  • TSTOPVRPM.PHLCHI
    1.700
    -0.040
    -2.3%
  • TSTOPVRPM.LAXSEA
    3.020
    -0.010
    -0.3%
  • WAIT.USA
    120.000
    0.000
    0%
  • ITVI.USA
    15,529.670
    -8.590
    -0.1%
  • OTRI.USA
    25.060
    -0.050
    -0.2%
  • OTVI.USA
    15,490.640
    -7.950
    -0.1%
  • TLT.USA
    2.720
    0.020
    0.7%
  • TSTOPVRPM.ATLPHL
    2.550
    -0.030
    -1.2%
  • TSTOPVRPM.CHIATL
    3.030
    -0.080
    -2.6%
  • TSTOPVRPM.DALLAX
    1.450
    0.150
    11.5%
  • TSTOPVRPM.LAXDAL
    2.910
    -0.030
    -1%
  • TSTOPVRPM.PHLCHI
    1.700
    -0.040
    -2.3%
  • TSTOPVRPM.LAXSEA
    3.020
    -0.010
    -0.3%
  • WAIT.USA
    120.000
    0.000
    0%
Air CargoAmerican ShipperBusinessFinanceInternationalLayoffs and BankruptciesLegal issuesNewsSupply Chains

Bankrupt LATAM gets financial lifeline

A New York district court overseeing the bankruptcy of LATAM Airlines Group (NYSE: LTM) approved a financing proposal to allow the Chilean carrier to access $2.45 billion for countering the impact of the coronavirus pandemic.

Judge James Garrity Jr. of the U.S. District Court for the Southern District of New York approved LATAM’s modified debtor-in-possession (DIP) financing proposal Friday.

LATAM CEO Roberto Alvo called the DIP’s approval “a very important step for the sustainability of the group.”

LATAM filed for bankruptcy protection in the U.S. in May to downsize the airline and restructure its debt, citing the financial toll of the coronavirus pandemic on its international passengers. 

Qatar Airways and LATAM Chairman Ignacio Cueto, two of the Santiago-based company’s largest shareholders, are providing $900 million in DIP financing.

LATAM has continued to operate passenger and cargo services during the bankruptcy process. Passenger operations are limited during the travel downturn induced by the coronavirus.

In mid-August, LATAM Cargo started a weekly flight between Miami and the Florianopolis airport in southern Brazil. The Boeing 767 freighter transports automotive parts, metals, food, pharmaceuticals and electronics to consumers in the Santa Catarina province.

Related News

LATAM kicks off Miami-Brazil cargo flight

LATAM lands Brazil’s last COVID-19 emergency air bridge flight

LATAM Airlines files for bankruptcy protection

Click for more FreightWaves/American Shipper articles by Chris Gillis.

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Chris Gillis

Located in the Washington, D.C. area, Chris Gillis primarily reports on regulatory and legislative topics that impact cross-border trade. He joined American Shipper in 1994, shortly after graduating from Mount St. Mary’s College in Emmitsburg, Md., with a degree in international business and economics.
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