Reservations, employee pay, flight vouchers as well as passenger and cargo operations will not be affected, according to the statement.
“The U.S. Chapter 11 financial reorganization process provides a clear and guided opportunity to work with our creditors and other stakeholders to reduce our debt, address commercial challenges that we, like others in our industry, are facing as a group,” the company said. “It is very different from the concept of bankruptcy in other countries and is not a liquidation proceeding.”
LATAM’s CEO Roberto Alvo cited coronavirus-related travel restrictions as a main driver for the decision to file for bankruptcy.
The voluntary reorganization will include LATAM’s affiliates in Chile, Peru, Colombia, Ecuador and the United States.