As reported in a statement, the firm signed a modification to the restructuring support agreement called Restructuring Support Agreement (RSA), dated November 26, 2021, to thus adding the approval of the Ad Hoc Group of Bondholders.
With this, the group represented by White & Case LLP is incorporated as parties, which includes a group of holders of US unsecured bonds issued by Latam Finance Ltd. with a maturity date in April 2024, for a capital of $700 million. Also to another group of holders of unsecured US bonds issued by Latam Finance with a maturity date of March 2026, for a capital of US$800 million, the company detailed.
Thus, have agreed not only to support the plan of reorganization, but to waive their objection to the Disclosure Statement which is being argued today in the James L. Garrity Court. The goal is to not take any other action inconsistent with the Plan of Reorganization, and to instruct W&C to withdraw its substantial contribution motion, filed with the Court.
Sources familiar with the process declared to DF and DFSUD What has happened in the last few hours is “very good for Latam and an important signal for the Court.”
Until before this modification, the Chilean flag company had the support of creditors that represented more than 70% of Latam’s collateral loans, of bondholders that represented approximately 48% of the 2024 and 2026 bonds, and some shareholders who have more than 50% of the capital of the firm. Now, bondholder support rises to 67%.
This Friday’s appointment before the Judge began at 12 noon in Chile and could last until 7:00 p.m. However, with the recent agreement, disclosure of the Disclosure Statement could be accelerated.
legal fees
At another point agreed upon in the last few hours, Latam announced that it will pay some legal and professional fees from the Ad Hoc group.
In a motion filed with the Court, the group asked that debtors be authorized “immediately to reimburse reasonable attorneys’ fees and expenses for making a substantial contribution to Chapter 11 cases in the aggregate amount” of about $4. ,6 millions.
According to the source consulted, this request contemplates amounts to January, for which he estimates that “the fees can easily be doubled now.”
Meanwhile, regarding the search for new financiersas announced by one of the company’s lawyers at Thursday’s hearing, the expert explains that, although the company had already obtained judicial authorization for a loan of US$ 2,450 million, “one thing is to have it financed and another how the different actors exercise their options to participate in financing, and there are spaces for new actors.”
Financial Journal-RIPE
