LATAM Airlines Group, a leading airline conglomerate based in Latin America, has announced its intention to relist American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE) after a four-year hiatus that began in June 2020. This strategic move signals LATAM’s confidence in the resurgence of US capital markets and its commitment to expanding its investor base.
ADRs serve as a convenient avenue for US investors to access shares of non-US companies, providing them with exposure to foreign firms while facilitating participation in US capital markets. LATAM’s decision to relist its ADRs underscores its recognition of the importance of US investor participation and the value of access to the robust US capital market ecosystem.
The relisting process entails several steps, including approval from LATAM’s board of directors and key stakeholders, such as its main creditors who supported the company’s reorganization plan during its Chapter 11 bankruptcy process. Market conditions will also play a crucial role, with LATAM prioritizing relisting only when favorable conditions prevail. Additionally, the relisting must be deemed to be in the best interests of the LATAM Airlines Group, aligning with its strategic objectives and long-term growth plans.
LATAM Airlines Group’s Chapter 11 restructuring garnered significant support from key stakeholders, including shareholders such as Delta Air Lines, Qatar Airways, and the Cueto Group, as well as creditors represented by the Evercore group and certain local bondholders. This collaborative effort laid the groundwork for LATAM’s successful emergence from bankruptcy and paved the way for its future growth and financial stability.
While the relisting process is underway, LATAM Airlines Group has cautioned that it may take up to six months to finalize all necessary procedures and meet regulatory requirements. However, the company remains optimistic about the prospects of its return to the NYSE and the opportunities it will unlock for shareholders, investors, and stakeholders alike.
As LATAM Airlines Group embarks on this journey to relist its ADRs on the NYSE, it reaffirms its position as a leading player in the Latin American aviation industry and underscores its commitment to delivering value and growth for its stakeholders in the dynamic and evolving global marketplace.
