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  • August 2020 (Revised December 2020)
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Latam Airlines and COVID-19: Seeking Bankruptcy Protection in the United States

By: Laura Alfaro, Mauricio Larrain, Carlos Vilches and Sarah Jeong
  • Format:Print
  • | Language:English
  • | Pages:20
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Abstract

On May 26, 2020, Latam Airlines became the largest airline in the world to be driven to bankruptcy by COVID-19. With a complex debt structure and international investor composition, the company decided to file for bankruptcy protection in the United States, which offered a more flexible reorganization procedure than the local bankruptcy process. After the filing announcement, the company reached an all-time-low stock market valuation. Some experts questioned whether the bankruptcy filing of Latam Airlines in the United States could be detrimental for the development of the Chilean capital market. Even if the company succeeded financially, would it be able to adapt to a different way of flying post-COVID?

Keywords

Airlines; Pandemic; Coronavirus Pandemic; Health Pandemics; Air Transportation; Insolvency and Bankruptcy; Capital Markets; Strategy; Latin America; Chile; United States

Citation

Alfaro, Laura, Mauricio Larrain, Carlos Vilches, and Sarah Jeong. "Latam Airlines and COVID-19: Seeking Bankruptcy Protection in the United States." Harvard Business School Case 321-027, August 2020. (Revised December 2020.)
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Laura Alfaro

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Related Work

    • August 2020 (Revised December 2020)
    • Faculty Research

    Latam Airlines and COVID-19: Seeking Bankruptcy Protection in the United States

    By: Laura Alfaro, Mauricio Larrain, Carlos Vilches and Sarah Jeong
    • December 2020
    • Faculty Research

    Latam Airlines and COVID-19: Seeking Bankruptcy Protection in the United States

    By: Laura Alfaro
Related Work
  • Latam Airlines and COVID-19: Seeking Bankruptcy Protection in the United States By: Laura Alfaro, Mauricio Larrain, Carlos Vilches and Sarah Jeong
  • Latam Airlines and COVID-19: Seeking Bankruptcy Protection in the United States By: Laura Alfaro
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