Latin America’s largest airline, Latam Airlines Group, has filed for bankruptcy after submitting a claim under Article 11 of the US Bankruptcy Code in New York.
A few days ago, Avianca, one of the largest airlines in Latin America, also went bankrupt, as travel bans across the region forced companies to keep their aircraft grounded.
The inclusion in Article 11 allows Chilean Latam to continue its operations, while at the same time preparing a plan to pay its creditors and restructure the company. Latam, which has the Chilean Cueto family and Delta Air Lines as shareholders, continues to operate with a reduced program and owes $ 900 million in loans, which it received from its shareholders, including the Cueto family, the Amaro family and Qatar Airways. Latam has $ 1.3 billion in liquidity.