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LATAM Airlines obtains approval on second try for key $2.45 billion loan package

FILE PHOTO: A passenger plane arrives during a general quarantine amid the spread of the coronavirus disease (COVID-19), at the Arturo Merino Benitez International Airport, in Santiago, Chile May 26, 2020. REUTERS/Ivan Alvarado

SANTIAGO (Reuters) - LATAM Airlines on Friday said it had obtained approval on its second try of a crucial $2.45 billion bankruptcy loan to take the airline out of Chapter 11 restructuring, after having its first package rejected by a judge last week.

The judge rejected the initial plan due to a convertible loan that he concluded was too beneficial to the airline’s current shareholders. The new package was similar, but did not include the convertible loan.

Reporting by Fabian Cambero

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