The largest airline in Latin America, LATAM Airlines Group has filed for Chapter 11 bankruptcy protection due to economic problems attributed to the COVID-19 pandemic.
The filing includes all its subsidiaries and affiliates, except for those in Argentina, Brazil, and Paraguay.
In the filing, the airline listed assets and liabilities in the range of $10 billion and $50 billion, with about $1.3 billion in cash.
The airline has secured funding from shareholders, including two of its largest the Cueto and Amaro families, and Qatar Airways, to provide up to $900 million in debtor-in-possession financing.
Despite filing for bankruptcy protection, the airlines and its affiliates will continue to fly with no impact on passenger or cargo operations and reservations.
Elsewhere, Colombia’s national carrier, Avianca, also filed for Chapter 11 bankruptcy in the US Southern District of New York. The coronavirus pandemic has seen the airline suspend its international flights since mid-March, reducing its consolidated revenue by over 80% and placing significant pressure on its cash reserves.
LATAM Airlines Group is an airline holding company, with its headquarters in Santiago, Chile. It is considered the largest airline in Latin America with subsidiaries in Argentina, Brazil, Colombia, Ecuador, Paraguay, and Peru.
The carrier trades in the Santiago Stock Exchange and the New York Stock Exchange (NYSE).