Carey represents QA Investments in $3.7b financing to LATAM Airlines

Carey has advised Qatar Airways Investments on a US$3.7 billion financing to LATAM Airlines Group

 Carey has represented Qatar Airways Investments, as lender, in a $3.7 billion USD debtor-in-possession (DIP) financing to LATAM Airlines Group, which replaces the previous DIP financing, in the context of insolvency cases under Chapter 11 of the US Bankruptcy Act.

This transaction was closed on 8 April, with Alston & Bird acting as international counsel to QA Investments; Demarest and Machado Meyer as Brazil counsel to LATAM Airlines; Claro & Cía. as Chilean advisor to LATAM Airlines; Rodrigo Elías & Medrano as Peruvian advisor to LATAM Airlines; White & Case as US advisor to Oaktree Capital; Simpson Thacher as US advisor to JP Morgan; Cescon, Barrieu, Flesch & Barreto as advisor to JP Morgan and TMF in Brazil; DLA Piper as advisor to JP Morgan, TMF FidoPeru and other lenders; and Cuatrecasas as Chilean advisor to Costa Verde Aeronáutica.

The transaction involved closing a new DIP financing before the term of the previous one expired, which required arduous negotiations. Raising the funds was key to its recovery, as its operating levels were affected by the covid-19 pandemic.

The teams of firms that provided legal advice were as follows:

Alston & Bird: partners Gerard Catalanello, Paul Hespel, James Vincequerra and David Brown; counsel David Rutherford; and associate Geoffrey Williams.

Demarest: partners Thiago Giantomassi and Guilherme Bechara; and associates Marcelo Peloso, Fausto Teixeira.

Machado Meyer: partner Fabio Komatsu Falkenburger.

Claro & Cía: partners José María Eyzaguirre B., José María Eyzaguirre F.; and associates Jorge Granic, Matías López.

Rodrigo Elías & Medrano: partner Guillermo Puelles and associates Renzo Rossi and Jacques D’Auriol.

White & Case: partners Michael Shepherd and Todd Wolynski; counsel David Grotts; and associates Laura Femino and Joan Martínez.

Simpson Thacher: partners Saneep Qusba, Jessica Tuchinsky and Nick Baker; and associate Whitney Bosworth.

Cescon, Barrieu, Flesch & Barreto: partners Daniel Laudisio (JP Morgan) and Fernando Gomes (TMF); and associates Beatriz Carvalho (TMF), Amanda Areas (JP Morgan) and Gabriela Romano (TMF).
DLA Piper: partners Mauricio Halpern (Chile-JP Morgan), Ricardo Escobar (Peru-lenders) and Sergio Barboza (TMF FiduPeru); and associates Hugo Molina (Chile-JP Morgan), Reyna Silva-Santisteban (Peru-lenders), Ricardo Mercado (Peru-lenders) and Juan Carlos Ramírez (TMF FidoPeru).

Cuatrecasas: partners Gianfranco Lotito, Alfonso Ugarte, Tomás Kubick; and associates Fernanda Anguita, Franco Dalmazzo, Martín Dell’Oro, María Jesús Hernández, Ronny Vaisman, Tomás Montes, Andrés Lafuente and Alejandra Prieto.

Carey: partners Jaime Carey (pictured left), Diego Peralta (pictured top centre), Pablo Iacobelli (pictured top right), Cristián Figueroa (pictured bottom centre), Manuel José Garcés (pictured bottom right); and associates Jaime Coutts, Benjamín Echeverría.

L Giselle Estrada