Latam Airlines bondholders in talks to supply up to US$1.5b loan, sources say

[SAO PAULO] A group of bondholders of Latam Airlines Group SA is in talks to supply up to US$1.5 billion in a debtor-in-possession loan within the Chapter 11 proceeding in the United States, two people with knowledge of the matter said on Thursday.

Bondholders including Blackrock Inc, Australia's Macquarie Group, HSBC and Chile's Moneda Asset Management, are informally discussing the issue with investment bank Moelis & Co.

The exact value of the DIP loan will be defined during the talks, but it is expected to be within the US$1 billion to US$1.5 billion range, the sources added.

Latam, the bondholders and Moelis did not immediately comment on the matter. Blackrock declined to comment.

Latam filed for US bankruptcy protection last month, aiming to restructure US$18 billion in debt. It was the world's largest airline to date to seek an emergency reorganisation due to the coronavirus pandemic.

The company said at the time its shareholders Cueto Group and Qatar Airways had committed to supplying US$900 million in additional financing, but that it aimed to raise up to US$2.5 billion to support operations.



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