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U.S. bankruptcy court approves LATAM Airlines restructure plan -Breaking


© Reuters. FILEPHOTO: An aircraft carrying passengers arrives at Santiago’s Arturo Merino Benitez International Airport, Santiago Chile on May 26, 2020. REUTERS/Ivan Alvarado/File Photo

(Reuters) – A U.S. court approved LATAM Airlines’ bankruptcy reorganization plans, according to the regional’s biggest air transport organization.

According to the airline, the U.S. bankruptcy court in New York’s southern district approved the restructuring plan under Chapter 11 U.S. Bankruptcy Code. It also stated that it hopes to be exempted from bankruptcy protection by the second half of 2011.

The plan involves capital growth, convertible bonds and new debt. It is expected to inject approximately $8 billion.

LATAM was born in 2012 after the merger of Chile’s LAN and its Brazilian counterpart TAM. LATAM applied for bankruptcy protection in the United States two years prior to the collapse of pandemic curbs.