Latam files for Bankruptcy in U.S.

Discussion in 'Foreign Airlines' started by jimntx, May 26, 2020.

  1. jimntx

    jimntx Veteran

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  2. eolesen

    eolesen Veteran

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    Yep, it looks like it wipes out DL’s equity, and worse, QR teamed up with the Cueto family to provide debtor-in-possession financing, which puts DL at a disadvantage when it comes to the reorg plan.

    As an upside, some of those A350’s that DL was supposed to get might be wiped out as well.
     
  3. eolesen

    eolesen Veteran

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    #4 eolesen, May 27, 2020
    Last edited: May 27, 2020
    Yep, DL is dumping the four A350’s already delivered, but will take the future orders for 10 aircraft. DK will pay a $62M fee to return the four airplanes.

    Odd deal, but after spending 1.9B to invest in LATAM last year, I can see why they'd want to try and recoup that via the joint venture.
     
  4. jimntx

    jimntx Veteran

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    The article mentioned something about CARES act money restrictions which prohibits recipients from investing in "certain" airlines. LATAM was not mentioned as one of the "certains", but at the least, investing in foreign airlines while receiving money from the U.S. government would "look bad."
     

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