Learn about the latest news on restructuring, insolvency and bankruptcy matters in Chile: Dentons obtained a favorable termination resolution for a subsidiary of a multinational group in a Santiago Civil Court; companies’ liquidation proceedings recorded an increase of 56.1% in September; Latam Airlines advances in its process to exit Chapter 11 of the US Bankruptcy Law.

Dentons obtains successful termination resolution for a subsidiary of a multinational company that was subject to a voluntary liquidation proceeding

On September 22, 2021, the 21st Civil Court of Santiago issued a resolution terminating the liquidation proceeding to which Regus Business Centre de Chile V S.A. ("Regus V"), a subsidiary of the multinational group IWG plc, was subject. As a result, the court declared extinguished –as a matter of law− all unpaid debts that the company had with its respective creditors, which amounted to a sum of over US$1.6 million.The termination resolution was not subject to appeals by the creditors.

To read the termination resolution click here.

Liquidation proceedings of debtor companies recorded an increase of 56.1% in September 2021

According to the Superintendency of Insolvency, in September of this year, the number of companies that underwent a voluntary liquidation procedure reached 178, which translates into an increase of 56.1% compared to the same month last year. This is the highest number of company liquidation requests recorded for a month since Law N° 20,720 came into force. In addition, compared to August 2021, the increase was 14.8%, also the highest of the current year.

To read the entire news, click here.

Latam Airlines moves forward with its U.S. Chapter 11 bankruptcy plan

The airline, which on May 26, 2020 became subject to reorganization proceedings in the United States, communicated to the CMF and the market in general, by means of an essential fact dated September 29, 2021, that it agreed to receive US$750 million under the Tranche B financing of a DIP (Debtor-In-Possession) credit facility.

The proposal was submitted by a group of financiers comprised of Oaktree Capital Management, L.P. and Apollo Management Holdings, L.P., as well as certain funds, accounts and entities advised by the former. Dentons advised Knighthead Capital Management LLC, as a creditor in this case.To learn more about the details of this transaction click here.