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LATAM Airlines shares plummet 85% after restructuring plan revealed -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: A LATAM Airlines plane can be seen at Santiago International Airport (Chile), March 30, 2017. REUTERS/Ivan Alvarado/File Photo

Fabian Cambero

SANTIAGO – LATAM Airlines shares (OTC) plunged to the Chilean stock market on Monday, following an announcement of the debtor carrier that it would be restructuring its shareholdings over the weekend.

Early trading saw the airlines share price plummet by almost 85%.

Friday’s announcement by the company stated that it has filed a restructuring plan. It proposes an $8.19 Billion infusion of capital to the group as a way to end Chapter 11 bankruptcy.

According to the group, it will offer a mixture of convertible notes, new equity and debt as part of its financing plan. It also stated that upon approval of the plan, they intend to issue $800 million in equity rights to shareholders.

Brazilian airline Azul SA (NYSE:) Monday’s announcement by LATAM Airlines that it offered to merge with LATAM Airlines this month was made. However, LATAM Airlines claimed that the Chilean-listed company is too valuable and it has since chosen to concentrate on its operations.

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