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Latam’s proposal has a green light in the USA

New York Southern District Court Judge James L. Garrity approved the revised Latam Group debt financing plan on September 18, which requested its judicial reorganization in the United States. During the 15-minute hearing, the creditors of Dechert and Knighthead Capital asked the judge to withdraw objections previously made to Latam’s proposal. The new financing plan in the DIP (“debtor in possession”) model, which allows creditors who offer financing priority in receiving the amounts, remains at USD 2.45 MM, but it includes more creditors. In addition, Latam excluded the clause in which the controlling shareholders, who participate in the DIP, would have the right to convert the debt amount into shares, with a 20% discount.

https://valor.globo.com/empresas/noticia/2020/09/21/proposta-da-latam-tem-sinal-verde-nos-eua.ghtml