12-Oct-2020 10:46 AM

LATAM receives first USD1.1bn from DIP financing

LATAM Airlines Group received (08-Oct-2020) the first instalment of the USD2.3 billion debtor in possession (DIP) financing. The first instalment is worth USD1.1 billion, corresponding to USD650 million of Tranche A and USD500 million of Tranche C. LATAM Airlines Group CFO Ramiro Alfonsin stated: "This first disbursement of the DIP loan will allow us to re-establish our operation, following the evolution of demand and to work with greater peace of mind on our reorganisation plan". The DIP financing approved by the Chapter 11 court considers two committed tranches:

  • Tranche A valued up to USD1.3 billion led by Oaktree Capital Management which committed USD1.1 billion and Knighthead Capital with USD175 million;
  • Tranche C considers an amount of up to USD1.1 billion made up of USD750 million committed by Qatar Airways and the Cueto and Eblen Groups and USD250 million which will be contributed by Knighthead Capital along with USD150 million that will be committed by a fund administered by Toesca SA Administradora General de Fondos. [more - original PR]

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