own and its ensuing implementation in Chile. This helped in convincing LATAM and other parties that this was a feasible alternative that our client was prepared to undertake if LATAM chose not to accommodate the ad hoc group of claimants’ expectations in the debtor’s reorganisation plan. Ultimately, our client and LATAM found common ground and the ad hoc group of claimants supported LATAM’s reorganisation plan. How did you work with the other firms involved to ensure that all parties were left satisfied by the proceedings? Not all parties were left satisfied with the proceedings. Our role was to assist Kramer Levin in the push for a reorganisation plan that was feasible under US and Chilean law, and that gave the ad hoc group of claimants the best value they could get, understanding that an impairment of their claims was inevitable. This involved talks with legal and financial advisors to parties with opposing interests. Our focus in these conversations was in assessing the strength of the other parties’ positions and curbing their expectations through providing them with recurrent reality checks. Likewise, we provided the ad hoc group of claimants with legal advice that provided the necessary confidence in their position to push for better terms from LATAM, who was brokering the deal for a reorganisation plan with all parties involved. What effect do you anticipate the restructuring will have on LATAM Airlines, its stakeholders and the wider aviation industry? The airline’s high executives explained that the reorganisation plan ensures LATAM’s long-term sustainability, and that the airline emerged from the reorganisation with a strengthened financial position and its unrivaled connectivity network in South America. Analysts explained that LATAM emerged as a more efficient group, leaner and with a modernised fleet, with the most extensive connection network and loyalty program in South America. I can imagine this does not please LATAM’s competitors, but one would expect this to be good for the industry, as it will be pressed to continue improving. From the stakeholders’ side, the reorganisation plan meant a considerable change in its shareholder structure. A large group of creditors accepted convertible notes in payment of their claims, and many invested new money in LATAM together with other parties. The success of these bets is tied to LATAM delivering on its business plan, which was key in determining the economics of the reorganisation plan. Do you have any other comments to make on this operation? In my view, the reorganisation proceedings laid bare critical shortcomings of the Chilean insolvency system, which hopefully leads to its revision. My focus would be in allowing additional time to reach a reorganisation agreement for cases of higher complexity, and to include UNCITRAL-based regulation that allows swift implementation of foreign reorganization plans. TRANSACTION INTERVIEW 87 In my view, the reorganisation proceedings laid bare critical shortcomings of the Chilean insolvency system, which hopefully leads to its revision.
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