Is LATAM the next big airline to fall prey to the Coronavirus pandemic?
Chile's LATAM Airlines Group SA filed for US bankruptcy protection (Chapter 11) on Tuesday, becoming the world's largest carrier so far to seek an emergency reorganization amid the coronavirus pandemic. LATAM posted profits for four consecutive years totaling more than $700 million. The airline, which has about $1.3 billion of cash on hand, recently approved a dividend payment. Also,
LATAM laid off 1,800 employees out of over 40,000 in the lead-up to its bankruptcy filing.
Also, LATAM wants to return 19 aircraft to lessors in its first bankruptcy restructuring of its 340 aircraft. Lessors will have 15 days to claim the jets. The group is still analyzing its future strategy but has “reached certain preliminary conclusions regarding excess aircraft that are no longer accretive to their business,” LATAM said in a motion awaiting court approval. The 19 aircraft comprise six A350 and 787 widebodies and 13 A320 family aircraft. Two A350-900s are registered in Brazil, four 787-9s in Chile, seven A320 family aircraft in Brazil, and six A321s in Chile. Of the 19 aircraft, 17 – including all widebodies – are held by Wilmington Trust but ultimately owned by various lessors. Wilmington Trust is LATAM’s largest secured creditor with $778 million due as of April 30.
Soruces: @moneycontrolcom @forbes
Image source: @latamairlines
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