Latam files for bankruptcy protection in the United States.
Latam Airlines Group filed for Chapter 11 bankruptcy protection in the United States on Tuesday due to the coronavirus crisis. The company claims it intends to "ensure long-term sustainability."
247 - The Latam Airlines Group has filed for Chapter 11 bankruptcy protection in the United States, citing difficulties due to the coronavirus crisis and promising to ensure long-term sustainability. According to a statement released by the company, "Argentina, Brazil, and Paraguay are not included in the Chapter 11 reorganization process. LATAM's Brazilian entity is in discussions with the Brazilian government regarding next steps and financial support for Brazilian operations." Chapter 11 is part of US bankruptcy law and allows companies time to financially reorganize.
Latam's CEO, Roberto Alvo, stated that "Latam entered the Covid-19 pandemic as a healthy and profitable group of airlines, but exceptional circumstances resulted in a collapse in global demand that not only brought aviation to a virtual standstill, but also changed the sector for the foreseeable future," reports [source name]. UOL.