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AVH - Avianca Holdings SA News Story

$0.88 0.0  0.0%

Last Trade - 08/05/20

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.56bn
Position in Universe th / 6850

Reuters Insider - LATAM becomes biggest airline victim of crisis

Wed 27th May, 2020 12:15pm
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_reomvym0&referenceId=tag:reuters.com,2020:newsml_OVCFPP28B_930&pageId=ReutersNews
Source: Reuters Insider

Description: LATAM Airlines Group, the continent's largest carrier, filed for
U.S. bankruptcy protection on Tuesday (May 26), becoming the world's largest
carrier so far to seek an emergency reorganization due to the coronavirus
pandemic. Francis Maguire reports.
Short Link: https://refini.tv/2TJHGho

Video Transcript:

South America's largest carrier filed for US bankruptcy protection on Tuesday.
The move by LATAM Airlines comes just weeks after Colombia's Avianca went
bust. But while Avianca had undergone management turmoil and losses, Chile's
LATAM has posted profits for the last four years of more than $700 million.
LATAM CEO Roberto Alvo tried to reassure stockholders. 

I want to be clear. Chapter 11 is not about liquidation, bankruptcy, or
insolvency. On the contrary, it is an opportunity to reorganize debt and
consequently to preserve the LATAM Group, as well as the workers and
collaborators, as much as possible. If we have chosen to take this decision,
it is because we are committed to continue flying. 

Latin American governments have been reluctant to bailout their airlines. A
sharp contrast to the help provided by European and US authorities to their
carriers. Chile's Economy Minister Lucas Palacios said on Tuesday he would not
rule out a bailout, but also didn't propose one. In the lead up to the
bankruptcy filing, LATAM laid off 1,800 employees. The carrier said it raised
up to $900 million from major shareholders to support operations through its
bankruptcy reorganization. LATAM also said it has $1.3 billion in cash on
hand
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