Business Transformed
LATAM Airlines Energized by $2.45 Billion in Financing
Business Transformed
LATAM Airlines Energized by $2.45 Billion in Financing
Key Contacts
When an entire industry is grounded, how do you chart — and finance — a new path?
In May 2020, LATAM Airlines Group S.A. (“LATAM”) and its subsidiaries in South America and the United States filed for Chapter 11 in the Southern District of New York as a result of the severe disruption to air travel caused by the global outbreak of COVID-19. Monthly revenue had declined by 95%, which, combined with LATAM’s high fixed-cost structure and $10.8 billion of debt as of the first quarter of 2020, led to severe liquidity and solvency issues.
Our Impact
FTI Consulting’s due diligence support and long-term projections were key to LATAM's obtaining the $2.45 billion debtor-in-possession financing necessary to fund ongoing operations — and preserve their leading position in global aviation in the post-pandemic era.
By the Numbers
Clearing the Way to Transformation
38
Debtors Prepared
FTI Consulting prepared 38 debtors for Chapter 11 bankruptcy in four weeks.
$7B+
Aircraft Leases and Fleet Financing
Our experts helped resize and reshape the aircraft fleet for both near-term and future recovery, negotiated aircraft leases and other fleet financing (total obligations in excess of $7 billion) to achieve material debt reduction and cost savings, and supported future aircraft and engine deliveries.
60.000+
Schedules and Claims
By the end of the engagement, FTI Consulting helped with the objection, withdrawal and stipulations of all 6,500 claims and 55,000 schedules, including coordinating the distribution of cash and securities.
In crisis and transformation,real-world experience delivers.
Our Role
A multidisciplinary response to preserve the position of a global aviation leader
LATAM’s legal counsel engaged FTI Consulting as financial advisors to represent the debtors and guide them through a complex, multi-jurisdictional Chapter 11 proceeding.
FTI Consulting prepared LATAM and its subsidiaries for Chapter 11 bankruptcy, managed extensive post-filing court reporting requirements and supported the company in assisting and advising on all fleet-related matters, a key component of both the restructuring and the repositioning of the business for future growth.
The team prepared the restructuring communication strategy with key stakeholders and developed a portal to assist with the claims process.
Professionals developed a three-statement financial model to support long-term projections for capital-raising and valuation purposes, a 13-week cash flow forecast and an 18-month budget to obtain the necessary debtor-in-possession financing.
Awards & Recognition
International Company Turnaround / Transaction
International Company Turnaround / Transaction
Cross-Border Turnaround of the Year
Cross-Border Turnaround of the Year
Black capitalized LatinFinance logo text on a white background.
Corporate Restructuring of the Year
International Matter of the Year
International Matter of the Year
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