Latam Air Files Chapter 11 Bankruptcy, Stymied by Lockdowns

Latam Airlines Group SA, Latin America’s largest air carrier, sought bankruptcy court protection in New York after the Covid-19 pandemic grounded flights across the region.

The Chapter 11 petition allows Latam to keep operating while the Chilean carrier works out a plan to pay creditors and turn around the business. Latam, whose shareholders include Chile’s Cueto family and Delta Air Lines Inc., is operating on a reduced schedule and has commitments for a bankruptcy loan of as much as $900 million.