Another airline in troubles

Latin America’s largest airline LATAM Airlines Group SA which operates in Chile, Peru, Colombia, Ecuador and the U.S. published that they filed for Chapter 11 bankruptcy protection in the United States. The airline will continue to fly while it is in bankruptcy protection and its affiliates in Argentina, Brazil and Paraguay were not included in the Chapter 11 filing.

“We have implemented a series of difficult measures to mitigate the impact of this unprecedented industry disruption, but ultimately this path represents the best option,” said CEO of LATAM in his statement.

LATAM, formed when Chile’s LAN merged with Brazil’s TAM in 2012, said its Brazilian affiliates are in discussions with the Brazilian government about the next steps and financial support for operations in the country.

Current company‘s assets and liabilities according to the U.S. Bankruptcy Court in the range of $10 billion and $50 billion. The biggest hit for the airline is downgraded rating by S&P and Fitch on Friday after the company confirmed it did not pay interest and principal on three tranches of 2015 $1 billion enhanced equipment trust certificates.

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