The shares of Latam Airlines operated with a strong rise in the first operations of this Monday after yesterday the Jefferies fund, one of the main stakeholders in completing the delivery of resources for the national airline in the middle of the process that is being followed before the United States justice after the company filed for Chapter 11 of the Bankruptcy Law in that country, will deliver a surprising new financing proposal.
The airline’s shares gained 6.53% to $ 1,386 on the Santiago Stock Exchange.
After the new offer from Jefferies analysts estimate that the current controllers of Latam Airlines, the Cueto and Amaro groups, in addition to Qatar Airways, could raise their financing proposal.
“The terms of the US $ 900 million DIP loan tranche proposed by Latam, financed by the largest shareholders, Grupo Cueto and Qatar Airways, may improve after the Jefferies proposal of August 2 promoted by Knighthead and a group of holders of bonds, ”said the agency Bloomberg.
Yesterday Jefferies presented the judge in the case, James L. Garrity, head of the southern court of New York – and who is leading the case – an offer for US $ 1,300 million, which is the amount that Latam defined for section A of DIP financing.
This is in addition to the US $ 900 million that the Jefferies fund itself had made in tranche C of financing for Latam, where there is already a proposal from the Cueto and Amaro families, in addition to Qatar Airways, all of them current shareholders of Latam.
In this way, Jefferies will compete with Oaktree, which also put on the table a $ 1.3 billion proposal for the airline.. This offer has been questioned, due, among other things, to the collection of a fee of almost US $ 10 million that Latam would have to pay in advance.
Latam had started a process of seeking financing for a total of US $ 2.4 billion in three tranches: A, B and C. There are currently offers in tranches A and C. The B was reserved for some government, in case it was agreed to provide state funding. The resources would make the company viable and be able to complete the reorganization process.
After the new offer from Jefferies analysts estimate that the current controllers of Latam Airlines, the Cueto and Amaro groups, in addition to Qatar Airways, could improve their financing proposal.
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