Commission for the Financial Market 1449 Av. Libertador Bernardo O´Higgins
Present
Re: Material fact report
Dear Chairman:
In accordance with the provisions of articles 9 and 10 of Law No. 18,045 on the Securities Market, and as established in the Commissions' General Rule No. 30, I inform you as a material fact of LATAM Airlines Group S.A. ("LATAM Airlines" or the "Company") the following
MATERIAL FACT:
On this date, the Honorable Judge James L. Garrity ruled on the DIP (Debtor In Possesion) financing proposals filed in the Southern District Court of New York (the "Court") within the framework of the LATAM reorganization process in the United States of America (Chapter 11 procedure).
The Court ruled that the price and terms of the DIP financing proposed by LATAM, both in Tranche A (Oaktree) and in Tranche C (Costa Verde and Qatar), meet the standard of being completely fair (entire fairness), and that DIP creditors have the right to have their good faith recognized, requirements to be able to approve the operation under the Bankruptcy Code of the United States of America.
However, the Court also determined that LATAM's option to cause Tranche C creditors to subscribe shares of the Company with the proceeds of the loan payment, included in the DIP financing, could not be approved at this time without affecting the possibility for the Court to review and rule in the future on the reorganization plan to be presented by
LATAM.
Since the request for approval of DIP funding had to be approved or rejected as a whole, the Court concluded that, for the reason indicated in the previous paragraph, it would not approve the request.
The Company, together with its legal and financial advisers, is analyzing the Court's decision and its scope to define a course of action.
Sincerely yours,
Roberto Alvo M.
CEO
LATAM Airlines Group S.A.
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LATAM Airlines Group SA published this content on 10 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 September 2020 02:49:03 UTC
LATAM Airlines Group SA is a Chile-based company, which is engaged in passenger and cargo air transportation, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil and in a developed series of regional and international routes in America, Europe and Oceania. These businesses are performed directly or through its subsidiaries in different countries. It operates through two segments: the Air transportation business and the Coalition and loyalty program Multiplus. It Air transportation segment corresponds to the route network for air transport. Its segment of Coalition and loyalty program called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. The Company operates a fleet of over 329 aircrafts. Its passenger aircrafts include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.