US judge refuses LATAM bankruptcy loan

US judge refuses LATAM bankruptcy loan

Debt Corporate & Sovereign Strategy Loans Structured Finance Brazil US Chile Latin America

A US bankruptcy judge has refused $2.45 billion in debtor-in-possession (DIP) financing for Chile's LATAM Airlines because it would have allowed the airline to convert the second tranche of the loan into shares, according to a securities filing on September 10. Judge James Garrity ruled that the price and terms were fair for the DIP financing from US asset management firm Oaktree Capital and three LATAM shareholders, the Cueto and Amaro families and Qatar Airways, but he balked at the provision

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