LATAM Group began the final phase of its reorganisation under Chapter 11 in the United States on September 6. By filing an essential fact with the Financial Market Commission (CMF) in Chile, the Group disclosed that it has registered 605,801,285,307 LATAM shares in the Securities Registry of the CMF, corresponding to the capital increase and the three classes of convertible bonds that were approved at the Extraordinary Shareholders' Meeting in July.
“With the registration by the CMF of the instruments approved in the restructuring plan, we are now taking the final step in our Chapter 11 process, with a view to emerge no later than November, well positioned for the future. We value the trust and continued support of our shareholders and other stakeholders and we look forward to a successful conclusion of the pre-emptive subscription period,” said the CEO of LATAM, Roberto Alvo.
Of the 605,801,285,307 registered shares, 531,991,409,513 will be destined to respond to the conversion of the convertible bonds and the remaining 73,809,875,794 shares will be offered preferentially to the shareholders. The unplaced balance, among shareholders and/or third parties, will be offered under the terms approved at the Extraordinary Shareholders' Meeting.
With these instruments, alongside its exit financing, the group expects to raise approximately US $8 billion.
The placement price of the 73,809,875,794 new paid-in shares was set at US $0.01083865799. The subscription value of the convertible bonds will be US$1 per bond.
In addition, the statutory 30-day pre-emptive option period for the new payment shares and convertible bonds will run from 13 September 2022 to 12 October 2022.
LATAM voluntarily initiated a reorganisation process in the United States in May 2020.