LATAM Group approves capital expansion and reformulates its shareholding structure

The LATAM Group’s Extraordinary Shareholders’ Meeting approved, with 99.82% acceptance, the company’s new capital structure in accordance with the provisions of the Reorganization Plan.

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The new structure will allow the group to implement the restructuring contemplated in the Plan in the coming months. This approval, the company indicates, represents a fundamental step to successfully emerge from the Chapter 11 process during the last quarter of this year.

«With the approval of our shareholders, we have taken a very important step in our reorganization process. The judge confirmed the plan last month, had more than 90% of creditors’ support, and today was approved by 82% of the total shares. This broad support demonstrates the robustness of the plan we presented and the degree of confidence in the future of the Group,» said LATAM Airlines Group CEO Roberto Alvo.

Shareholders agreed to the issuance of three classes of convertible bonds and a capital increase of approximately US$10.3 billion. This increase will be implemented through the issuance of new payment shares in the amount of US$800 million, and the issuance of shares to support the conversion into LATAM shares of the convertible bonds, for approximately US$9.5 billion.

Qatar, Delta and Costa Verde, the current majority shareholders, will retain 27% of the shares, while minority shareholders will retain 6% of the company.

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According to Diario Financiero, the company’s value will reach US$14 billion and it will have approximately US$2.7 billion in liquidity, divided into US$1.6 billion in cash and US$1.1 billion in credit lines.

According to Alvo, the capital increase will reduce the group’s total debt by 35% to around US$ 6.6 billion.