SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

The US court has approved LATAM Airlines Group’s bankruptcy restructuring plan under Chapter 11. WSJ notes that under the plan, LATAM Airlines seeks to raise $5.4bn to guide them out of their two-year long pandemic-driven bankruptcy. Of this amount, $3.67bn is part of a planned capital raise, for which Sixth Street Partners, Strategic Value Partners LLC and Sculptor Capital Management have made commitments and taken control, as per WSJ. The other $1.77bn will be raised via convertible bonds and shares issued to LATAM’s shareholders which include Delta Air Lines and Qatar Airways. Judge James Garrity approved of the restructuring due to “good faith, arms-length negotiations” among LATAM and their stakeholders and believes it is the best way to maximize the value of the firm. This ruling was passed despite objections from other creditors of LATAM who either argued that there was unfair treatment of creditors, or that the restructuring violated Chilean law.

LATAM’s 7% bonds due in 2026 have jumped higher by 2.05 points and are currently trading at 94.55.

Show Buttons
Hide Buttons