LATAM Airlines Group has announced it is proceeding with the opening and relisting of the company’s American Depositary Receipts (ADR) Program on the New York Stock Exchange (NYSE), and that it is exploring the possibility of having a secondary sale with certain creditors that were backstop parties to its Chapter 11 reorganisation plan.
The parent entity of LATAM Airlines and LATAM Airlines Brasil said it had reached out to these creditors, which had previously entered into a Registration Rights Agreement (RRA), to see if they “would be interested [...] in considering a possible secondary sale of a portion of their equity interest in the company.”
LATAM said in a filing to Chile's stock exchange and the US Securities and Exchange Commission that the secondary sale had not yet been launched, as it could only be initiated at the request of the main backstop parties under the RRA and represent at least USD200 million.
Under the RRA, backstop parties interested in divesting all or a portion of their equity interest in LATAM in one or more secondary public offerings of shares would be entitled to obtain the company’s support.
Earlier this year, LATAM Airlines Group said it would begin the process of relisting on the NYSE after a four-year hiatus during which time it underwent Chapter 11 reorganisation in the United States.
