The plan includes an injection of 8,000 million dollars, a sum that LATAM had said last year would be made up of fresh capital, convertible bonds and debt.
Chapter 11 of the US Bankruptcy Law allows a company that cannot pay its debts to reorganize without pressure from creditors.
Created in 2012 by the merger of Chile’s LAN and Brazil’s TAM, LATAM filed for Chapter 11 protection in May of last year after lockdown measures to contain the coronavirus pandemic forced it to reduce its operations by 95%.
In September, a New York court approved a $2.45 billion bankruptcy loan package to assist the airline, which had laid off thousands of workers and closed its Argentine subsidiary.
LATAM — with subsidiaries in Brazil, Chile, Colombia, Ecuador, Peru and the United States — was expected to have a total debt of some $7.26 billion and liquidity of $2.67 billion when the plan was approved.
The airline indicated in its statement that it expects to emerge from bankruptcy by the second half of 2022.