LATAM Airlines Seeks $2.75bn Loan to Fund Chapter 11 Exit

LATAM Airlines has asked a bankruptcy judge to approve $2.75bn in new loans to fund its exit from Chapter 11 bankruptcy. The airline company said it got loan commitments worth $2.75bn from JPMorgan Chase Bank NA, Goldman Sachs Lending Partners, Barclays Bank, BNP Paribas, BNP Paribas Securities Corp and Natixis. Besides it also had an additional $1.17bn agreement to refinance and extend its existing bankruptcy loan, as per Reuters. LATAM Airlines needs to secure the above loans before coming out of bankruptcy. It would continue to raise funds post-bankruptcy, via an $800mn equity offering. LATAM Airlines filed its bankruptcy exit plan in November 2021 and continues to step closer to move out of bankruptcy.

Its 6.875% dollar bonds due 2024 were down 1 point to 93.25, yielding 9.72%.

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