Latam files for bankruptcy in the US

The Latam Group and its affiliates in Peru, Chile, Colombia, Ecuador, and the United States filed for bankruptcy protection (Chapter 11) in the United States. The group’s subsidiaries in Brazil, Argentina, and Paraguay were left out of the process aimed at restructuring and negotiating with the company’s creditors.

“We are looking ahead to a post-COVID future, focused on adapting to a new and revolutionary way of flying, with the health and safety of passengers and employees first,” said the group’s CEO, Roberto Alvo.

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In a statement, the group stresses that it will continue to operate as travel restrictions and demand permits, paying employees, fulfilling obligations in relation to benefits, and paying essential suppliers, in addition to respecting LATAM Pass points and flight reservations as they work on the reorganization process by Chapter 11.

LATAM and its affiliates are also in discussions with their respective governments in Chile, Brazil, Colombia, and Peru for support in obtaining additional funding, protecting jobs wherever possible, and minimizing disruptions in operations. “Latam and its affiliates would like to thank their shareholders, employees, creditors, and communities served for supporting the process to ensure the group’s long-term future. The group is confident that this process will bring these diverse stakeholders together to build a new Latam, better positioned to succeed in the coming years “, says the company, in a statement.

Alvo also says that this is another of the difficult decisions that the group had to make after the start of the pandemic to ensure the protection of companies. “This process [Chapter 11] is a legal basis developed to allow companies to pause and reorganize their debts, adapt more quickly to the new scenario and scale themselves more efficiently and guarantee new forms of financing”.

The CEO reaffirms that Chapter 11 is not about liquidation, bankruptcy, or bankruptcy. “On the contrary, it is a way of reorganizing and preserving the group. We will leave this process more efficient, more agile, and strengthened to support what the future holds”, he concluded.


The group secured financial support from shareholders, including the Cueto and Amaro families, which have a close and lasting relationship with Latam, and Qatar Airways, to obtain up to US $ 900 million in DIP (debtor-in-possession, in English). To the extent permitted by law, the group would accept other shareholders interested in participating in this process to provide additional financing. In addition, at the time of the order, the group had approximately $ 1.3 billion in cash available.

“Faced with the biggest crisis in aviation history, the board approved this path after analyzing all the alternatives available to guarantee the group’s sustainability. In the past, we have adapted to new realities and that is why we are confident that Latam will be able to succeed in the post-COVID-19 context and continue to serve Latin America, connecting the region to the world, ”said the president of the Management of Latam, Ignacio Cueto.

The group created a special website,, where interested parties can find additional important information about what this announcement means to them. Latam has also established a direct line for inquiries related to Chapter 11, which can be accessed at (929) 955-3449 or (877) 606-3609 in the USA and Canada. In the next few days, we will have a free international hotline available and we will publish the number on our special website. The group also created a dedicated email for queries related to the reorganization, [email protected].

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