Latin American airlines hit obstacles in securing Chapter 11 financing
Latin American Airlines that are currently restructuring in Chapter 11 have faced challenges in securing their respective financing packages, and so far LATAM Airlines Group and Avianca have firmed up their financing; but not before facing obstacles in firming up that support.
Aeromexico is also working to gain approval for its financing, but it appears that squabbling has occurred, and the court has reportedly delayed approval for the scheme. Avianca, meanwhile, has appealed an injunction against a loan from the Colombian government that was upheld by the country’s courts.
The main objective for all those operators is to secure their financing and move forward and exit restructuring, but obstacles have continued to pop up for Latin America’s full service airlines as they work to size their operations appropriately for an environment where demand will remain pressured for the short to medium term.
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