Moderators: richierich, ua900, PanAm_DC10, hOMSaR
Byrdluvs747 wrote:So if Azul eventually acquires LATAM, what happens to DL's role in the airline? I know they will have the chance to buy shares if the LATAM plan goes through, but does that clause disappear in a Azul + Latam merger? In my mind it seems as though DL will have no involvement in the new carrier, but I'm seeking clarification.
Byrdluvs747 wrote:So if Azul eventually acquires LATAM, what happens to DL's role in the airline? I know they will have the chance to buy shares if the LATAM plan goes through, but does that clause disappear in a Azul + Latam merger? In my mind it seems as though DL will have no involvement in the new carrier, but I'm seeking clarification.
JJ777 wrote:Byrdluvs747 wrote:So if Azul eventually acquires LATAM, what happens to DL's role in the airline? I know they will have the chance to buy shares if the LATAM plan goes through, but does that clause disappear in a Azul + Latam merger? In my mind it seems as though DL will have no involvement in the new carrier, but I'm seeking clarification.
As expected, some creditors are unimpressed with the deal as they feel it benefits shareholders too much instead of protecting creditors. A long legal battle could come up as American and Chilean laws on the subject are wildly different and LATAM has to navigate through both of them.
https://www.wsj.com/articles/latam-airl ... 1638307470
usflyer msp wrote:JJ777 wrote:Byrdluvs747 wrote:So if Azul eventually acquires LATAM, what happens to DL's role in the airline? I know they will have the chance to buy shares if the LATAM plan goes through, but does that clause disappear in a Azul + Latam merger? In my mind it seems as though DL will have no involvement in the new carrier, but I'm seeking clarification.
As expected, some creditors are unimpressed with the deal as they feel it benefits shareholders too much instead of protecting creditors. A long legal battle could come up as American and Chilean laws on the subject are wildly different and LATAM has to navigate through both of them.
https://www.wsj.com/articles/latam-airl ... 1638307470
This seems to be a common thing with DL ownership stakes. DL-AM is having the same issue.
https://www.wsj.com/articles/aeromexico ... 1638281926
dfwfanboy wrote:usflyer msp wrote:JJ777 wrote:
As expected, some creditors are unimpressed with the deal as they feel it benefits shareholders too much instead of protecting creditors. A long legal battle could come up as American and Chilean laws on the subject are wildly different and LATAM has to navigate through both of them.
https://www.wsj.com/articles/latam-airl ... 1638307470
This seems to be a common thing with DL ownership stakes. DL-AM is having the same issue.
https://www.wsj.com/articles/aeromexico ... 1638281926
If delta pulls it off, good for them. But shareholders are certainly supposed to be prioritized after creditors in Chptr 11.
JJ777 wrote:LATAM's restructuring agreement faces significant hurdles to be approved as it involves major concessions by the creditors which were necessary to conform it to Chilean law. It remains to be seen if they'll all agree to the proposed terms when it's all said and done.
vhtje wrote:What happens if that agreement is not forthcoming? LATAM remains in bankruptcy? For how long?
I am not familiar with US-style, so-called "Chapter 11" bankruptcy law. Under British and Australian law, with which I am more familiar, a company is placed into Administration either voluntarily (i.e. by its own board/management) or by a majority of creditors (although that arrangement is called something else). The appointed Administrator (typically an accounting firm) then runs the organisation, putting creditors' (and employees', and any tax liabilities) claims ahead of shareholders'. The company can trade out of Administration and continue business, if the creditors agree to the arrangements determined by the Administrator.
But if the creditors do not agree to the arrangements - usually because the offered settlement on their debts is not acceptable - the company ceases trading, is wound up and the assets liquidated by the Administrator. Similarly, the Administrator might determine that the company is not a going concern, that further trading will only worsen the debt load; in this case, the decision is made to wind it up (See: Ansett Australia.)
LAXintl wrote:LATAM Airlines seeks $2.75 billion in new exit loans to leave BK protection, along with a deal to refinance $1.17 in existing bankruptcy loan.
https://skift.com/2022/06/13/latam-airl ... ankruptcy/
Carrier also says it plans an $800 million equity offering post-bankruptcy
questions wrote:LAXintl wrote:LATAM Airlines seeks $2.75 billion in new exit loans to leave BK protection, along with a deal to refinance $1.17 in existing bankruptcy loan.
https://skift.com/2022/06/13/latam-airl ... ankruptcy/
Carrier also says it plans an $800 million equity offering post-bankruptcy
What, if anything, does this do to the Delta-Latam JV?
Did Delta have an equity stake in Latam?
LAXintl wrote:More specifically, targeting November 3rd exit.
https://seekingalpha.com/news/3891717-l ... november-3
LAXintl wrote:And its official. LATAM successfully completes financial restructuring under U.S. court supervision.
press release (pdf)
https://www.latamairlinesgroup.net/stat ... 98ea59eec8
Mistral1 wrote:Let's hope they restart routes to TLV, MEL, FRA and PPT. I believe the resumption of JNB has already being greenlighted.
igazzano wrote:Mistral1 wrote:Let's hope they restart routes to TLV, MEL, FRA and PPT. I believe the resumption of JNB has already being greenlighted.
FRA is already served via GRU, before pandemic they operated SCL-FRA directly, the stop (with 5to freedom) at MAD was eliminated.
MEL and SYD (direct) no info, hope they restart son, the prices to Oceania with out NZ in Argentina are very expensive.
TLV, was operated by a Chilean crew due brazilian regulations (too much hours in service).
PPT, Currently the IPC airport doesnt allow international operaritions.
igazzano wrote:Mistral1 wrote:Let's hope they restart routes to TLV, MEL, FRA and PPT. I believe the resumption of JNB has already being greenlighted.
FRA is already served via GRU, before pandemic they operated SCL-FRA directly, the stop (with 5to freedom) at MAD was eliminated.
MEL and SYD (direct) no info, hope they restart son, the prices to Oceania with out NZ in Argentina are very expensive.
TLV, was operated by a Chilean crew due brazilian regulations (too much hours in service).
PPT, Currently the IPC airport doesnt allow international operaritions.