South America's Largest Airline Latam Cleared to Exit Bankruptcy

South America's largest airline, Latam Airlines Group, can exit its U.S. Chapter 11 bankruptcy restructuring after a judge approved its reorganization plan Saturday.

The Chile-based carrier will exit its restructuring leaner than when it went in after shedding its Argentine subsidiary, but with $8 billion in new capital including $5.4 billion in new financing from shareholders Delta Air Lines, Qatar Airways, and the Cueto family, as well as its major creditors. Delta, Qatar Airways, and the Cuetos will also maintain equity stakes in Latam.

"This is a very important step in the process to emerge from Chapter 11, and we will continue working hard to complete the remaining steps in the coming months,” Latam CEO Roberto Alvo said in a statement on June 19.

Latam is the last of the big three Latin American airline bankruptcies to come to a close following Avianca's exit in December, and Aeromexico in March. Latam plans to exit Chapter 11 in the second half of the year.