September 23, 2020

Latam airline declares bankruptcy due to the effects of the coronavirus

The Latam airline, the largest in Latin America, has filed for 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, by the ” unprecedented impact “of the 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 drop in its operations.

In a statement, the airline explains that it has filed for bankruptcy law 11 in the United States, a week after having cut off 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 plan to inject $ 900 million to deal with the situation.

The airline clarifies that group employees will continue to receive their wages and benefits, and providers will receive their payments “on time and in good shape” for all goods and services delivered from May 26, 2020 onwards.


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