SANTIAGO – LATAM airlines (OTC) Group SA is the biggest Latin American air transport company and announced Wednesday it has received support from nearly all its creditors in a reorganization plan the company will present to a U.S. Court.

According to the airline, the agreement was submitted to Manhattan’s bankruptcy court. This Manhattan bankruptcy court is currently handling Chapter 11 bankruptcy cases. The case was filed in May 2020 by the company due to the COVID-19 outbreak.

In a statement, the company stated that the agreement included bondholders from Chile, the Official Committee of Valista Creditors(UCC), and the Ad Hoc Group of LATAM creditors, led by Sixth Street Strategic Value Partners and Sculptor Capital.

It stated that the agreement would allow creditors to choose whether they want to receive Class A Convertible Bonds, or Class C Convertible Bonds as part of the Reorganization Plan. This will improve their recovery by a cash payment.

The plan for diluting shares was presented by the company in November 2013.

The hearing is scheduled for May 17 at which LATAM’s lawyers will ask U.S. Bankruptcy Judge James Garrity to approve the proposal. This plan calls for an infusion of $8.19B through new equity and convertible notes, as well as debt.

(Report by Fabián Andrés Cambero; Writing by Alexander Villegas; Editing by Alison Williams)