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Latin America’s largest airline, LATAM, has filled for Chapter 11 bankruptcy protection on Tuesday in New York.
The airline filled for Chapter 11 in relation to debt of $2.2 billion as of April 30 from its five largest secured creditors against 61 aircraft and 56 engines.
61 aircraft and 56 engines are securitized, comprising 20 A321s, nine 767s, four 787s, two A350s as well as 26 undisclosed aircraft.
The secured claims on the 61 aircraft and 56 engines are from Wilmington Trust ($778m), Citibank ($603m), Credit Agricole ($274m), Wells Fargo WFC ($277m), and Natixis ($243m) based on April 30 values, according to a court filing.
Airline also owes around $3.5b for other creditors such as fuel suppliers, Boeing, engine manufactures and banks
LATAM ended 2019 with debt of $18 billion and assets of $21b.
However, Airline said the reservations, employee pay, flight vouchers as well as passenger and cargo operations will not be affected.