LATAM Airlines Group S.A. and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Larrain Vial Servicios Profesionales Limitada as their investment banker.
The firm’s services will include advisory and intermediation services related to Latin American entities; identification of investors willing to participate in the debtor-in-possession financing through a collective investment fund; and analysis and implementation of shareholder access to the DIP financing.
The firm will be compensated as follows:
(a) Fixed Fee. Larrain Vial will receive .25 percent of any financing it obtains for Tranche A of the DIP financing and .10 percent of any financing it obtains for Tranche C of the DIP financing. The firm will receive 50 percent of such fixed fee when it: (1) receives a firm investment commitment; and (2) the financing structure proposed by Debtors is approved by the bankruptcy court. The firm will receive the remaining 50 percent of such fixed fee at the time of actual disbursement of the financing. Notwithstanding the above, the Fixed Fee shall not exceed $1 million.
(b) Discretionary Fee. In addition to any fixed fee, Debtors, in their discretion, may pay Larrain Vial up to, but not exceeding, $1 million, which will be payable upon completion of Debtors’ Chapter 11 cases.
Felipe Porzio Honorato, head of Investment Banking at Larrain Vial, disclosed in court filings that the firm is a “disinterested person” within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Felipe Porzio Honorato
Larrain Vial Servicios Profesionales Limitada
Avenida El Bosque Norte 177
Piso 4, Las Condes
Santiago, CL 7550100
About LATAM Airlines Group
LATAM Airlines Group S.A. is a pan-Latin American airline holding company involved in the transportation of passengers and cargo and operates as one unified business enterprise.
LATAM Airlines Group S.A. is the largest passenger airline in South America. Before the onset of the COVID-19 pandemic, LATAM offered passenger transport services to 145 different destinations in 26 countries, including domestic flights in Argentina, Brazil, Chile, Colombia, Ecuador and Peru, and international services within Latin America as well as to Europe, the United States, the Caribbean, Oceania, Asia and Africa.
LATAM Airlines Group S.A. and its 28 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in Chile, Peru, Colombia, Ecuador and the United States are part of the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and $17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as general bankruptcy counsel; FTI Consulting as restructuring advisor; Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel; PricewaterhouseCoopers Consultores Auditores SpA as independent auditors; and Larrain Vial Servicios Profesionales Limitada as Latin America investment banker. Prime Clerk LLC is the claims agent.