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LAXintl
Posts: 24788
Joined: Wed May 24, 2000 12:12 pm

Re: Updated: LATAM files for Bankruptcy

Fri Sep 11, 2020 5:49 pm

US bankruptcy judge rejected a proposed US$2.4 billion DIP financing plan for the carrier on the grounds that a convertible loan included as part of the package would amount to “improper” treatment of other shareholders.

https://uk.reuters.com/article/us-latam ... KKBN2613J7
From the desert to the sea, to all of Southern California
 
TYWoolman
Posts: 631
Joined: Sat Jun 24, 2017 8:24 pm

Re: Updated: LATAM files for Bankruptcy

Sat Sep 12, 2020 2:43 pm

So does the rejected reorganization plan put future Delta skin in the game at risk, I wonder (?)
 
MIflyer12
Posts: 8473
Joined: Mon Feb 18, 2013 11:58 pm

Re: Updated: LATAM files for Bankruptcy

Sat Sep 12, 2020 4:00 pm

LATAM will file another reorg plan.

I have to wonder how often under current law DIP financing has been rejected for unfair treatment, at least for firms this size? This isn't time for amateur hour.
 
n9801f
Posts: 231
Joined: Tue Apr 13, 2004 8:29 am

Re: Updated: LATAM files for Bankruptcy

Tue Sep 15, 2020 2:24 am

MIflyer12 wrote:
LATAM will file another reorg plan.

I have to wonder how often under current law DIP financing has been rejected for unfair treatment, at least for firms this size? This isn't time for amateur hour.


A fairer question might be how often bankrupt firms tried to put a similar provision into a DIP loan.

The provision seems to short-circuit some of the matters yet to be decided by the court.

Sounds like a well considered ruling to me.
 
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vhtje
Posts: 1224
Joined: Sat Jan 10, 2009 12:40 pm

Re: Updated: LATAM files for Bankruptcy

Tue Sep 15, 2020 8:04 am

MIflyer12 wrote:
LATAM will file another reorg plan.

I have to wonder how often under current law DIP financing has been rejected for unfair treatment, at least for firms this size? This isn't time for amateur hour.


Why do you use the term “amateur hour”? Several key creditors raised concerns about the plan. I do not know what those concerns were, but if “several”creditors were unhappy with the proposed plan, that suggests to me the concerns must have been legitimate.

The court’s responsibility is to listen to all viewpoints from different interest parties before making judgements. It seems to me, the court did its job.

Unless you know something we do not?
I only turn left when boarding aircraft. Well, mostly. All right, sometimes. OH OKAY - rarely.
 
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Polot
Posts: 10846
Joined: Thu Jul 28, 2011 3:01 pm

Re: Updated: LATAM files for Bankruptcy

Tue Sep 15, 2020 11:54 am

vhtje wrote:
MIflyer12 wrote:
LATAM will file another reorg plan.

I have to wonder how often under current law DIP financing has been rejected for unfair treatment, at least for firms this size? This isn't time for amateur hour.


Why do you use the term “amateur hour”? Several key creditors raised concerns about the plan. I do not know what those concerns were, but if “several”creditors were unhappy with the proposed plan, that suggests to me the concerns must have been legitimate.

The court’s responsibility is to listen to all viewpoints from different interest parties before making judgements. It seems to me, the court did its job.

Unless you know something we do not?

I think he was referring to the people drawing up the DIP funding/Plan with his “amateur hour” comment, not the court.
 
Boof02671
Posts: 2258
Joined: Sun Jul 10, 2016 12:15 am

Re: Updated: LATAM files for Bankruptcy

Tue Sep 15, 2020 5:33 pm

A DIP is not the POR and DL already wrote off it’s investment/ownership
 
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vhtje
Posts: 1224
Joined: Sat Jan 10, 2009 12:40 pm

Re: Updated: LATAM files for Bankruptcy

Wed Sep 16, 2020 7:52 am

Polot wrote:
vhtje wrote:
MIflyer12 wrote:
LATAM will file another reorg plan.

I have to wonder how often under current law DIP financing has been rejected for unfair treatment, at least for firms this size? This isn't time for amateur hour.


Why do you use the term “amateur hour”? Several key creditors raised concerns about the plan. I do not know what those concerns were, but if “several”creditors were unhappy with the proposed plan, that suggests to me the concerns must have been legitimate.

The court’s responsibility is to listen to all viewpoints from different interest parties before making judgements. It seems to me, the court did its job.

Unless you know something we do not?

I think he was referring to the people drawing up the DIP funding/Plan with his “amateur hour” comment, not the court.


Duh. Of course he was. How very stupid of me. Thank you for pointing out my error. Apologies to MIflyer12.
I only turn left when boarding aircraft. Well, mostly. All right, sometimes. OH OKAY - rarely.
 
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mercure1
Posts: 4882
Joined: Sun Jul 13, 2008 5:13 am

Re: Updated: LATAM files for Bankruptcy

Wed Sep 16, 2020 8:12 pm

LATAM will seek to reject 23 additional aircraft leases.

Image

https://pbs.twimg.com/media/EiCfpvEWsAY ... name=small
mercure f-wtcc
 
danipawa
Posts: 485
Joined: Sat Oct 01, 2016 1:18 am

Re: Updated: LATAM files for Bankruptcy

Fri Sep 18, 2020 2:03 am

well...36 first, now this
 
MIflyer12
Posts: 8473
Joined: Mon Feb 18, 2013 11:58 pm

Re: Updated: LATAM files for Bankruptcy

Fri Sep 18, 2020 7:40 pm

The court approved the refiled reorg plan.

SANTIAGO (Reuters) - LATAM Airlines LTM.SN on Friday said it had obtained approval on its second try of a crucial $2.45 billion bankruptcy loan to take the airline out of Chapter 11 restructuring, after having its first package rejected by a judge last week.

https://www.reuters.com/article/us-lata ... 692YG?il=0
 
TropicalSky
Posts: 520
Joined: Fri May 05, 2017 1:37 pm

Re: Updated: LATAM files for Bankruptcy

Mon Sep 21, 2020 4:22 pm

behind wall...but article says they got approved
https://www.flightglobal.com/strategy/n ... 51.article
 
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lightsaber
Moderator
Posts: 20538
Joined: Wed Jan 19, 2005 10:55 pm

Re: Updated: LATAM files for Bankruptcy

Mon Sep 21, 2020 8:21 pm

danipawa wrote:
well...36 first, now this

I'm being lazy and summing up all LATAM aircraft off Wikipedia. 361 today. Shrinking by 59 is minor. I could understand twice that.

What I don't understand us the debtor in possession dance.

Lightsaber
Winter is coming.
 
Boof02671
Posts: 2258
Joined: Sun Jul 10, 2016 12:15 am

Re: Updated: LATAM files for Bankruptcy

Mon Sep 21, 2020 8:46 pm

lightsaber wrote:
danipawa wrote:
well...36 first, now this

I'm being lazy and summing up all LATAM aircraft off Wikipedia. 361 today. Shrinking by 59 is minor. I could understand twice that.

What I don't understand us the debtor in possession dance.

Lightsaber

More accurate fleet

https://www.airfleets.net/recherche/?ke ... sponly=opp
 
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lightsaber
Moderator
Posts: 20538
Joined: Wed Jan 19, 2005 10:55 pm

Re: Updated: LATAM files for Bankruptcy

Mon Sep 21, 2020 9:03 pm

Boof02671 wrote:
lightsaber wrote:
danipawa wrote:
well...36 first, now this

I'm being lazy and summing up all LATAM aircraft off Wikipedia. 361 today. Shrinking by 59 is minor. I could understand twice that.

What I don't understand us the debtor in possession dance.

Lightsaber

More accurate fleet

https://www.airfleets.net/recherche/?ke ... sponly=opp

I like airfleets. Do realize they have a bit of a delay, I'll agree, better than Wikipedia. But overall, the cuts are not more than I expected.

Lightsaber
Winter is coming.
 
MIflyer12
Posts: 8473
Joined: Mon Feb 18, 2013 11:58 pm

Re: Updated: LATAM files for Bankruptcy

Mon Sep 21, 2020 9:41 pm

lightsaber wrote:
danipawa wrote:
well...36 first, now this

I'm being lazy and summing up all LATAM aircraft off Wikipedia. 361 today. Shrinking by 59 is minor. I could understand twice that.

What I don't understand us the debtor in possession dance.

Lightsaber


You don't understand what DIP is, or, like me, you were surprised that LATAM's lawyers and financiers first led them down a path that wouldn't be approved?
 
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lightsaber
Moderator
Posts: 20538
Joined: Wed Jan 19, 2005 10:55 pm

Re: Updated: LATAM files for Bankruptcy

Mon Sep 21, 2020 11:07 pm

MIflyer12 wrote:
lightsaber wrote:
danipawa wrote:
well...36 first, now this

I'm being lazy and summing up all LATAM aircraft off Wikipedia. 361 today. Shrinking by 59 is minor. I could understand twice that.

What I don't understand us the debtor in possession dance.

Lightsaber


You don't understand what DIP is, or, like me, you were surprised that LATAM's lawyers and financiers first led them down a path that wouldn't be approved?

The path. I get DIP. It us a serious process that normally follows a boring and predictable pattern. Thus isn't a time to play games. If DIP is poorly setup, that can end a company; usually DIP us setup without controversy, secured by certain assets that didn't have a prior lien with no favorites.

Doing anything else means returning to the starting line with a couple months worth if losses.

My advice to LATAM: The time to try and be a brilliant manager is not when you file bankruptcy.

Lightsaber
Winter is coming.
 
MIflyer12
Posts: 8473
Joined: Mon Feb 18, 2013 11:58 pm

Re: Updated: LATAM files for Bankruptcy

Mon Sep 21, 2020 11:20 pm

Maybe some HBS or Wharton professor could identify some fraction of Ch 11 reorg plans that have been delayed due to discriminatory DIP arrangements. (I don't have the idea it's common to very large firms.)

Like I said, it was predictable they would refile and eventually get approved. Cleary Gottlieb is their counsel - not their first time at the rodeo.
 
Boof02671
Posts: 2258
Joined: Sun Jul 10, 2016 12:15 am

Re: Updated: LATAM files for Bankruptcy

Tue Sep 22, 2020 2:22 pm

TropicalSky wrote:
behind wall...but article says they got approved
https://www.flightglobal.com/strategy/n ... 51.article

A new DIP plan hasn’t been approved. They filed a motion for a new plan to be approved and the hearing isn’t till 10/5/2020

https://t.co/Uzv4EtcyCD?amp=1
 
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mercure1
Posts: 4882
Joined: Sun Jul 13, 2008 5:13 am

Re: Updated: LATAM files for Bankruptcy

Tue Oct 20, 2020 8:33 pm

LATAM is considering transferring its Brazil passenger operations to its ASBA Cargo subsidiary AOC to reduce payroll costs.

https://www.aeroflap.com.br/absa-cargo- ... am-brasil/

In meeting with unions, LATAM said it needed 20 percent reduction in payroll. It also seeks to modify the model for seniority and equipment pay and compensation for food and meal vouchers in addition to salary allowances.
mercure f-wtcc
 
User avatar
LAXintl
Posts: 24788
Joined: Wed May 24, 2000 12:12 pm

Re: Updated: LATAM files for Bankruptcy

Tue Oct 27, 2020 2:17 am

Talk continuing.
Pilots union seeking guarantee LATAM won't set up a lower cost ulterior airline in Brazil and also ensure flights from Brazil staffed by Brazilian crews. Apparently LATAM uses Chilean crews on some Brazil routes like GRU-JFK and GRU-MAD currently.

https://airlinegeeks.com/2020/10/26/neg ... s-advance/
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