DocuSign Envelope ID: DC4E28B5-AD63-457C-8CD2-9A9E890CFA4DE
3LATAM
ESSENTIAL FACT
LATAM AIRLINES GROUP S.A
Registration in the Securities Registry No. 306
Santiago, September 5, 2022
Mrs. Solange Berstein Jáuregui
President
Financial Market Commission
Av. Libertador Bernardo O’Higgins 1449
PRESENT
Ref.: Registration of convertible shares and bonds in the Securities Registry; setting the price of shares; and initiation of the offering and placement of shares and convertible bonds.
Dear Sir or Madam:
In accordance with Article 9 and second paragraph of Article 10 of Law No. 18,045 and General Rule No. 30, of your Commission (the “Commission”), duly authorized for this purpose, I inform you as an Essential Fact with respect to LATAM Airlines Group S.A. (the “Company” or “LATAM”), the following:
1. As reported by Essential Fact of June 18, 2022, the reorganization and financing plan (the “Reorganization Plan”) previously approved by the Company’s Board of Directors, was confirmed by resolution dated June 18, 2022 by the Bankruptcy Court of the Southern District of New York that hears the reorganization proceeding (the “Chapter 11 Proceeding”) of LATAM and certain of its direct and indirect subsidiaries (together with LATAM, the “Debtors”) under Chapter 11 of Title 11 of the United States Code. The Reorganization Plan, which will allow Debtors to successfully emerge from Chapter 11 Proceedings, is binding on the Company. In compliance with the Reorganization Plan, the Company’s Board of Directors adopted the resolutions set forth in point II below.
II. At a meeting held today, the Company’s Board of Directors adopted, among others, the following resolutions:
1. Notice was taken of the registration in the Commission’s Securities Register of: (i) the 605,801,285,307 shares of the Company corresponding to the capital increase approved at the Company’s Extraordinary Shareholders’ Meeting held on July 5, 2022 (the “Meeting”); and (ii) the three classes of bonds convertible into shares of the Company whose issuance was also approved at the Meeting (collectively, the “Convertible Bonds”).
As of September 2, 2022: (i) the aforementioned 605,801,285,307 shares were registered in the Commission’s Securities Registry under No. 1120; and (ii) the Convertible Bonds, on the other hand, were registered in the same Registry under No. 1116.
Of these 605,801,285,307 shares of the Company: (i) 531,991,409,513 shares will be used to respond to the conversion of the Convertible Bonds; and (ii) the remaining 73,809,875,794 shares will be offered preferentially to shareholders and, the unplaced balance, among shareholders and/or third parties (the “New Payment Shares”), in the terms approved at the Meeting;
The placement price of the aforementioned 73,809,875,794 New Payment Shares was set at US$0.010838655799 (zero point zero one zero eight eight six five nine nine United States dollars) per share. The subscription value of the Convertible Bonds will be US$1 per bond.
These values will be informed in the notices established in article 10 of the Regulations of Corporations;
It was agreed to initiate the offer and placement of the New Payment Shares and the Convertible Bonds. In this regard, it was resolved that the legal period of 30 days of preferential option for the New Payment Shares and the Convertible Bonds run simultaneously, from September 13, 2022 to October 12, 2022.
The shareholders who will be entitled to exercise the preferential option offer, both with respect to the New Payment Shares and the Convertible Bonds, will be those registered at midnight on September 7, 2022.
These dates and other details of rigor will be communicated through the publication of notices in the terms established in articles 10 and 26 of the Regulations of Corporations;
The notices to be published in accordance with the Regulations on Corporations shall be the following:
Notice Date Daily Publication
– Notice article 10 September 6, 2022 “La Tercera” of Santiago
– Notice article 26 September 13, 2022 “La Tercera” of Santiago
Without further ado, he sincerely greets Uad.,
DocuSigned by:
Juan Carlos Muni
Juan Carlos Menció
Legal Vice President
LATAM Airlines Group S.A.
Stock Exchange – Santiago
Electronic Exchange of Chile – Santiago
Link to file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=3fcc53b5233f16096b97290e8c641754VFdwQmVVMXFRVFZOUkUwd1RucFplRTVSUFQwPQ==&secuencia=-1&t=1682376108
