Banco Santander has recognized the exposure of the United States (SEC) an exposure of close to 500 million euros to the airline Latam, the largest in Latin America that filed for bankruptcy on May 26, the newspaper reported Tuesday. Expansion.
In a statement sent to the Securities and Exchange Commission (SEC), Santander clarifies that it is among the main creditors of the company, with an exposure of 549 million dollars, just under 500 million euros.
This is the frequent flyer loyalty program that Santander and the airline operate jointly through a card from the financial institution.
The bank clarifies that at the moment it does not see the need “to revalue or recognize an impairment of this prepaid expense”, although it admits that these assets “may be affected” in the future as a result of the bankruptcy declaration; the restructuring process to be undertaken by Latam could have “a material adverse effect” on the business.
On May 26, Latam declared bankruptcy in its country of origin, Chile, as well as in Peru, Colombia, Ecuador and the United States, which in practice amounts to declaring bankruptcy, for the “unprecedented impact “of COVID-19.
The subsidiaries of Argentina, Paraguay and Brazil are not included in the bankruptcy petition, and in the latter country, it is in talks with the Government to seek financial support, as in Chile, Colombia and Ecuador, to “as far as possible “protect employment and minimize the decline in its operations.
The airline filed for bankruptcy law 11 in the United States, a week after having cut out of 1,400 of its workers as a result of the economic consequences of the pandemic.
The company has the backing of its two main shareholders, the Cueto and Amaro families and Qatar Airways, who are planning to inject $ 900 million to face the situation.