South American mega-carrier LATAM, which recently left oneworld and entered a joint venture with Delta, has filed for Chapter 11 bankruptcy in the Southern District of New York. This follows a similar move by Avianca.
The bankruptcy filing includes LATAM Chile, Peru, Ecauador and Columbia but does not include Brazil, Argentina or Paraguay. Debtor-in-possession financing totaling $900 million is provided by existing owners the Amaro and Cueto families and by 10% owner Qatar Airways.