Latin America’s greatest service, LATAM Airways Group SA, stated on Tuesday that it has filed for Chapter 11 chapter safety within the US. It’s in search of to restructure its debt after going through Covid-19-related monetary issues.
In line with the corporate, reservations, worker pay, and flight vouchers won’t be affected. Passenger and cargo operations will even proceed as regular.
“The US Chapter 11 monetary reorganization course of supplies a transparent and guided alternative to work with our collectors and different stakeholders to scale back our debt, deal with business challenges that we, like others in our trade, are going through as a gaggle,” LATAM stated in an announcement. “It is vitally totally different from the idea of chapter in different nations and isn’t a liquidation continuing.”
#ContinuaremosVolando mientras nos reorganizamos bajo el capítulo 11 de los EEUU para atravesar el COVID-19, mientras transformamos nuestro negocio, nos adaptamos a una nueva forma de volar y aseguramos la sostenibilidad a largo plazo. Conoce más en https://t.co/j4hyLGmDNH pic.twitter.com/jbysJPP3XJ
— LATAM Airways (@LATAMAirlines) Could 26, 2020
LATAM CEO Roberto Alvo cited coronavirus-related journey restrictions as a essential driver for the choice to file for chapter. “We’ve applied a collection of adverse measures to mitigate the affect of this unprecedented trade disruption, however finally this path represents the most suitable choice,” stated Alvo.
“We’re looking forward to a post-Covid future and are targeted on reworking our group to adapt to a brand new and evolving manner of flying, with the well being and security of our passengers and workers being paramount,” he added.
The voluntary reorganization will embrace LATAM’s associates in Chile, Peru, Colombia, Ecuador and america. The airline, nonetheless, will proceed to fly whereas it’s in chapter safety and its associates in Argentina, Brazil and Paraguay weren’t included within the submitting.
The airline operated greater than 1,300 flights a day and transported 74 million passengers final 12 months. It had greater than 340 planes in its fleet and practically 42,000 workers on its payroll, based on its most up-to-date annual firm report.
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