LATAM just filed for bankruptcy

[Jeremias]

^So it's confirmed, the Covid thing is ecologists' wet dream. No more big, bad planes in the sky. Planet Earth smiles. Middle-class dudes stay at home, slave-working in their city as they are meant to do. All is great.

 

[Dougie]

^So it's confirmed, the Covid thing is ecologists' wet dream. No more big, bad planes in the sky. Planet Earth smiles. Middle-class dudes stay at home, slave-working in their city as they are meant to do. All is great.

This doesn't mean that LATAM and Avianca will cease to exist. They will just negotiate down their debts with creditors, some equity holders will get wiped out.

 

[elhombresinnombre]

Time to finally build that Darien Gap highway

Heheheh. Great idea and I'd love that. But given the history of Columbia vs. Panama I can't see the latter agreeing to that any time soon.

 

[Fiscal]

Why did they declare bankruptcy under US law?

 

[Dougie]

I believe LATAM is a holding company with separate business entities. LATAM Brasil, LATAM Argentina, LATAM Peru, etc.

They declared bankruptcy on their US corporation probably because it was more advantageous to do so there than elsewhere.

 

[dilmah]

Why did they declare bankruptcy under US law?

bankruptcy is protection from creditors. Their US-based holding is probably the company which actually had to pay back the loans.