September 18, 20 - 5:05 pm - Reuters

LATAM Airlines obtains approval on second try for key $2.45 billion loan package

LATAM Airlines 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.

The judge rejected the initial plan due to a convertible loan that he concluded was too beneficial to the airline’s current shareholders. The new package was similar, but did not include the convertible loan. The company is in a financial crisis, like other airlines, due to the coronavirus impact on aviation.