Carey steers Qatar Airways´ DIP financing

Carey has assisted Qatar Airways and its affiliates on a debtor-in-possession negotiation and execution financing

Carey advised Qatar Airways, and its affiliates, on the negotiation and execution of a debtor-in-possession (DIP) financing to LATAM Airlines during the reorganization process of the latter, under the Chapter 11 rules in the Bankruptcy Court for the Southern District of New York, for up to $2.4 billion.
This transaction was particularly challenging for several reasons.

First, this was the first Chapter 11 case for a Chilean public company. Then, all the legal teams involved had to overcome difficulties arising from differences between the Insolvency laws of the United States and the substantive laws of the other jurisdictions involved, namely Chile, where LATAM Airlines’ shares are listed initially. In addition to this, due to the number of jurisdictions and parties involved, a high degree of coordination between a large number of law firms from different countries was required. Finally, part of this process was highly litigious, and the amounts involved were significantly high for a Chilean company.

Qatar Airways was counselled by Carey (Chile), Alston & Bird, Estudio Olaechea (Peru), HEKA Abogados (Ecuador), Posse Herrera & Ruiz (Colombia), Harney Westwood & Riegels, Mattos Filho Marrey Jr e Quiroga Advogados (Brazil), and Houthoff.

LATAM Airlines were assisted by Cleary Gottlieb Steen & Hamilton, Claro & Cía. (Chile), Brigard Urrutia (Colombia), Demarest Advogados (Brazil), Pérez Bustamante & Ponce (Ecuador), Rodrigo, and Elías & Medrano Abogados (Peru). Oaktree Capital Management recurred to White & Case, Cescon, Barrieu, Flesch & Barreto Advogados (Brazil), DLA (Argentina), DLA Piper (Chile), DLA Piper Martínez Beltrán (Colombia), DLA Piper (Peru), and Ogier, Ferrere (Uruguay). Costa Verde Aeronáutica was touted by Wachtell, Lipton, Rosen & Katz, Baraona Fischer & Cía. (Chile). Delta Air Lines was helped by Davis Polk & Wardwell, Barros & Errázuriz (Chile). Knighthead Capital was counselled by Hogan & Lovells, Dentons Larraín Rencoret (Chile), Houlihan Lokey, Proskauer Rose, y Quinn Emanuel Urquhart & Sullivan. Ad Hoc Group of LATAM Airlines bondholders search for help at White & Case. Dechert counselled the Official Committee of Unsecured Creditor.

Carey team was led by the managing partner of the firm, Jaime Carey (pictured), and involved partners Diego Peralta, Pablo Iacobelli and Ricardo Reveco, and associates Jaime Carey Jr. and Jaime Coutts.