the group president Latam, Roberto Alvo, stated on Saturday, 27, that, in the midst of judicial recovery, the company even received an expression of interest in the purchase, by Blue (BLUE4), but that the offer was considered “incomplete” and “insufficient”.
“We discarded Azul’s ideas. It was not possible to act on this proposal. Its content is confidential,” he said at a press conference. Sought, Azul declined to comment.
Latam presented at the end of the night of Friday (26) its judicial recovery plan, which includes the injection of US$ 8.19 billion (R$ 45.9 billion) in the group through a combination of new equity, convertibles and debt.
The proposal will be evaluated by the US Courts, where the recovery process is taking place, on January 27th. After the judgment, the company will have an exclusivity period to negotiate the approval of the plan with creditors.
Azul, however, maintains behind-the-scenes talks with creditors around an alternative plan, which would give it control of Latam. The proposal can gain strength, therefore, only if Latam’s plan is rejected by creditors.
Target highlighted that the presented plan already has the support of 71% of unsecured creditors. Under the American bankruptcy law (chapter 11), the company needs the approval of 66% of them.
Latam’s proposal provides for a $800 million share purchase rights offering open to shareholders. Three classes of convertible bonds will also be issued, offered to shareholders and, later, to certain creditors. These bonds should add up to US$4.64 billion.
Target declined to comment on whether possible impacts of the new wave of covid-19 on the financial market could hinder the company’s access to capital.
The information is from the newspaper The State of São Paulo.
Source From: Moneytimes