The Cueto Group and the Eblen Group in LATAM Airlines Group S.A.’s $10.4 billion restructuring

On November 3, 2022, LATAM Airlines Group S.A. and its affiliates successfully emerged from Chapter 11 protection. The Cueto Group and the Eblen Group, along with other large shareholders, negotiated with LATAM and certain of its creditors to execute a restructuring support agreement that led to confirmation of a plan of reorganization on June 18, 2022. As part of the restructuring, the Cueto Group and the Eblen Group, along with other lenders, provided ~$1.15 billion of junior debtor-in-possession financing to LATAM. The Cueto Group, together with other unaffiliated shareholders, also provided ~$1.77 billion of backstop commitments to support LATAM’s exit financing. As a result of these transactions, LATAM emerged from Chapter 11 poised to reaffirm its transportation leadership in Latin America with a new capital structure deleveraged by ~$3.6 billion.

Wachtell, Lipton, Rosen & Katz served as legal counsel to the Cueto Group and the Eblen Group.