The South American largest air carrier, LATAM Airlines has Today seek for Chapter 11 bankruptcy protection as it grapples with the sharp downturn in air travel sparked by the coronavirus pandemic.
It also filed Chapter 11 for its affiliates in Chile, Peru, Colombia & Ecuador. The Chapter 11 petition allows LATAM to keep operating while the Chilean carrier works out a plan to pay their creditors and turn around the business.
The carrier aims to continue operating and hopes to reduce its debt and find new financing sources through the bankruptcy process.
Passenger and cargo flights will continue to operate, and employees will still be paid.
Latam said the bankruptcy filing has the support of two families that have big stakes in the company, as well as large shareholder Qatar Airways.
Latam is not including its affiliates in Argentina, Brazil and Paraguay. It says it is talking with the Brazilian government about how to proceed with its operations there.
Source: abcnews.go.com