Suppliers

To Our Valued Suppliers:

We hope that you and your families around the world are remaining safe and healthy amidst the ongoing global COVID-19 pandemic.

We know how important our vendors are to sustaining our operations and preparing us to return to the skies when customers begin to fly again, and we want to be very clear that we remain fully committed to maintaining positive relationships with you throughout this process.

To that end, there are several key details you should know about our filing:

  • Through the Chapter 11 protection process, we will pay vendors for all goods and services ordered or delivered after May 26, 2020, in the ordinary course and according to our existing terms. This applies to any goods and services invoiced to any entity that is part of the Chapter 11 reorganization.
  • Payments for goods and services invoiced to any entity not involved in the Chapter 11 filing will continue as normal.

It is important to know, however, that outstanding payments for goods and services delivered to filing entities before our filing must be addressed as part of the restructuring process due to certain requirements and obligations imposed by the court. This is normal in any Chapter 11 financial reorganization process, and we sincerely regret any inconvenience or hardship this may cause. We are working to mitigate this impact to the extent we are able. A full list of filing entities can be found at cases.primeclerk.com/LATAM.

If you have outstanding payments for goods or services delivered prior to our filing, it is possible you may have a “claim” in this process. If so, you will be legally notified of your options. If you do have a claim, please understand that we cannot provide further advice at this time and encourage you to consult your legal counsel.

We deeply appreciate your continued partnership and trust in LATAM and understand that you may have questions about today’s announcement. If you have any questions related to our reorganization, do not hesitate to reach out to your normal company contact or call our dedicated hotline – (929) 955-3449 or (877) 606-3609 in the U.S. and Canada. Claims information for those believing they are owed money by the filing entities can be found at cases.primeclerk.com/LATAM.

Frequently Asked Question:

  1. How do I know if my contract is with a filing entity?

    While most of our affiliates are included in the reorganization process, our affiliates incorporated in Brazil, Paraguay, and Argentina are not included, due to the nature of their debt structure and current financial status. You can find a full list of filing entities is available at cases.primeclerk.com/LATAM.

  2. How will the restructuring affect LATAM Airlines’ relationship with suppliers? Can I continue to work with LATAM throughout the filing?

    We know how important our vendors are to sustaining our operations and preparing us to return to the skies when customers begin to fly again, and we want to be very clear that we remain fully committed to maintaining positive relationships with you throughout this process. We are confident that this is the best option for ensuring the sustainability of our operations and meeting our obligations to our stakeholders, while comprehensively addressing our debts. Please know that we have thoughtfully entered this process and expect to emerge a more agile, resilient and sustainable company and partner.

  3. Will I continue to be paid in a timely manner throughout the restructuring process? Will there be any changes to my current payment process / schedule?

    We expect to be able to take meaningful steps to protect your interests. LATAM has sought approval to make these critical payments and expects to receive approvals in the coming days. Outstanding payments for goods and services delivered to filing entities before we filed must be addressed as part of the restructuring process, due to certain requirements and obligations imposed by the court. We will pay vendors for all goods and services ordered or delivered after May 26, 2020, in the ordinary course and according to our existing terms. Please understand that this is normal in any Chapter 11 financial reorganization process, and we sincerely regret any inconvenience or hardship this may cause. We are working to mitigate this impact to the extent we are able.

  4. Will I experience any changes to the terms of my contract as a result of this filing?

    No. LATAM is committed to preserving business continuity throughout this process, and we are making a concerted effort to ensure current payments to all of our vendors under the terms of our existing contracts.

  5. If my contract is with a non-filing entity, how will the restructuring impact my relationship with LATAM? Can I continue to work with LATAM throughout the filing?

    You should experience no change in your relationship with the group if your contract is with a non-filing entity. We recognize how important our suppliers are to sustaining our operations and preparing us to return to the skies when customers begin to fly again, and we are fully committed to maintaining positive relationships with all of our suppliers – whether contracted with a non-filing or filing entity – throughout this process

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