One hundred years after the first scheduled commercial flight in Latin America, COVID-19 shutdowns and border closings grounded the region’s largest airline, causing a liquidity crisis.

Globally, the airline industry went from record passenger levels in 2019 to almost nothing­—LATAM Airlines saw a 90% freefall in revenue in 2020.

Maximizing recoveries

AlixPartners came on board to usher the company through Chapter 11 protection and advise local bondholders on progress while maximizing the recoveries. Our team of experts created a recovery waterfall model to evaluate recoveries under different scenarios and provided expert testimony for the debtors.

With a skilled strategy and careful negotiations, we helped the debtor buy time to relaunch, and rewarded creditors with a hike in valuation.

Delivering for bondholders

The global settlement came in at $170 million, over $60 million above the initial settlement of $110 million, and offered an additional plan treatment option, providing the opportunity to receive take-back paper in lieu of equity.

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