Latam Air Reaches Bankruptcy Deal That Hands Reins to Creditors

Latam Airlines Group SA has reached a deal with key stakeholders that paves the way for the Chilean carrier to slash debt and exit bankruptcy under new ownership.

Latin America’s largest airline plans to raise around $5 billion by issuing shares and convertible notes to current stockholders and creditors as it exits Chapter 11 bankruptcy, according to court papers. Ultimately, the deal allows a group of creditors -- led by Sixth Street Partners, Sculptor Capital and SVPGlobal -- to take control of the company.

It will also allow Santiago-based Latam to slash its debt load by around $4 billion upon ...