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OTHER FINANCIAL LIABILITIES

12 Months Ended

Dec. 31, 2022

Disclosure Of Other Liabilities Text Block Abstract

NOTE 18 - OTHER FINANCIAL LIABILITIES

The composition of other financial liabilities is as follows:

	As of		As of
	December 31,		December 31,
	2022		2021
	ThUS$		ThUS$
Current
(a) Interest bearing loans		629,106		3,869,040
(b) Lease Liability		173,735		578,740
(c) Hedge derivatives		-		2,734
(d) Derivative non classified as hedge accounting		-		2,937
Total current		802,841		4,453,451

Non-current
(a) Interest bearing loans		3,936,320		3,566,804
(b) Lease Liability		2,042,719		2,381,898
Total non-current		5,979,039		5,948,702

(a)	Interest bearing loans

Obligations with credit institutions and debt instruments:

	As of		As of
	December 31,		December 31,
	2022		2021
	ThUS$		ThUS$
Current
Loans to exporters	-		159,161
Bank loans (3)		353,284		415,087
Guaranteed obligations (5)(6)		17,887		75,593
Other guaranteed obligations (1)(3)		66,239		2,546,461
Subtotal bank loans		437,410		3,196,302
Obligation with the public (3)		33,383		396,345
Financial leases (4)(5)(6)(7)		156,285		199,885
Other loans		2,028		76,508
Total current (2)		629,106		3,869,040

Non-current
Bank loans (3)		1,032,711		106,751
Guaranteed obligations (5)(6)		307,174		434,942
Other guaranteed obligations		408,065		178,961
Subtotal bank loans		1,747,950		720,654
Obligation with the public (3)		1,256,416		1,856,853
Financial leases (4)(5)(6)(7)		931,954		989,297
Total non-current (2)		3,936,320		3,566,804
Total obligations with financial institutions (2)		4,565,426		7,435,844

(1)

During March and April 2020, LATAM Airlines Group S.A. drew the entirety (US$ 600 million) of the committed credit line “Revolving Credit Facility (RCF)”. The line is guaranteed with collateral made up of aircraft, engines and spare parts, which was fully drawn until November 3, 2022. Once emerged from Chapter 11, this line was fully repaid and is available to be drawn.

(2)

On May 26, 2020 LATAM Airlines Group S.A. and its subsidiaries in Chile, Peru, Colombia and Ecuador filed for protection under Chapter 11 of the United States bankruptcy law in the Court for the Southern District of New York. Under Section 362 of the Bankruptcy Code. The same occurred for TAM LINHAS AÉREAS S.A and its affiliates (all LATAM affiliates in Brazil), dated July 9, 2020. Filing for Chapter 11 automatically suspends most actions against LATAM and its affiliates, including most of actions to collect financial obligations incurred before the Chapter 11 filing date or to exercise control over the property of LATAM and its affiliates. Consequently, although the bankruptcy filing may have caused defaults for some of the obligations of LATAM and its affiliates, the counterparties cannot take any action as a result of such defaults.

Then, on November 3, 2022, the Company and all of its subsidiaries successfully emerged from Chapter 11.

(3)

On September 29, 2020, LATAM Airlines Group S.A. obtained Debtor-in-Possession (“DIP”) financing for a total of US$2,450 million, composed of US$1,300 million of a tranche A (“Tranche A”) and US$1,150 million of a tranche C (“Tranche C” ), of which US$750 million were provided by related parties. Obligations under the DIP were secured by assets owned by LATAM and certain of its subsidiaries, including, but not limited to, shares, certain engines and spare parts.

On October 8, 2020, LATAM made a partial withdrawal for US$1,150 million from Tranche A and Tranche C, and then, on or around June 22, 2021, LATAM made an additional withdrawal for US$500 million from Tranche A and Tranche C.

On October 18, 2021, LATAM Airlines Group S.A. obtained court approval for a Tranche B (“Tranche B”) of the DIP Financing for up to a total of US$750 million. The obligations of this Tranche B, like the previous tranches, were guaranteed with the same guarantees granted by LATAM and its subsidiaries subject to the Chapter 11 Procedure, included without limitation, by pledges on shares, certain engines and spare parts. The following draws on the DIP must be done from Tranche B until the proportion drawn is equal to the proportion drawn on the other tranches. When the proportions were the same, new draws are done on a pro-rata basis on all tranches.

On November 10, 2021, the Company made a partial transfer for US$200 million from Tranche B and later on December 28, 2021, LATAM made a new transfer for MUS$ 100. After these transfers, LATAM still It had US$1,250 million of line available for future transfers.

On March 14, 2022, LATAM made a transfer for MUS$ 38.6 from Tranche A, US$227.3 million from Tranche B and US$34.1 million from Tranche C.

The DIP had an expiration date of April 8, 2022, subject to a potential extension, at LATAM’s decision, for an additional 60 days in the event that LATAM’s reorganization plan has been confirmed by a United States Court order. for the Southern District of New York, but the plan is not yet effective. Finally, it should be noted that this extension was not carried out and that this DIP financing was paid in full on April 8, 2022, being replaced by a new consolidated and modified DIP Credit Agreement.

On February 17, 2022, LATAM submitted an initial proposal (the “Consolidated and Modified Initial DIP Financing Proposal”) of a consolidated and modified text of the contract called Super-Priority Debtor-In-Possession Term Loan Agreement before the Court of Bankruptcies of the Southern District of New York.

On March 14, 2022, the Board of Directors of the Company, unanimously, approved the Amended and Restated DIP Financing Proposal, subject to the approval of the Court. On March 14, 2022, a new consolidated and modified contract of the Existing DIP Credit Agreement (the “Amended and Restated DIP Credit Agreement”) was submitted to the Court for its approval. The NewDIP Credit Agreement (i) refinances and fully replaces the existing Tranches A, B and C in the Existing DIP Credit Agreement; (ii) contemplates a maturity date in accordance with the calendar that the Debtors foresee to emerge from the Chapter 11 Procedure; and (iii) includes certain reductions in fees and interest compared to the Existing DIP Credit Agreement and the Recast and Amended DIP Initial Financing Proposal. Obligations under the DIP were secured by assets owned by LATAM and certain of its subsidiaries, including, but not limited to, shares, certain engines and spare parts.

On April 8, 2022, a consolidated and modified text was signed (the “Amended and restated DIP Credit Agreement”) of the Original DIP Credit Agreement, which modifies and recasts said agreement and repays the obligations pending payment under it. (that is, under its Tranches A, B and C). The total amount of the Consolidated and Modified DIP Credit Agreement is US$3.700 million. The Consolidated and Amended DIP Credit Agreement (i) includes certain reductions in fees and interest compared to the Existing DIP Credit Agreement; and (ii) contemplates an expiration date in accordance with the calendar that LATAM foresees to emerge from the Chapter 11 Procedure. Regarding the latter, the scheduled expiration date of the intitial DIP Credit Agreement was August 8, 2022, subject to to possible extensions that, in certain cases, had a deadline of November 30, 2022.

Likewise, on April 8, 2022, the initial disbursement took place under the Amended and Restated DIP Credit Agreement for the amount of US$2,750 million. On April 28, 2022, an amendment to this contract was signed, extending the expiration date from August 8, 2022 to October 14, 2022.

On October 12, 2022, this Amended and Restated DIP Credit Agreement was fully repaid with the DIP-to-Exit financing, which contemplated US$750 million of a bridge financing for senior secured notes maturing in 2027, US$750 million of another bridge financing for senior secured notes due 2029, US$750 Mn of a Term Financing, US$1,146 million of a Junior DIP financing, and US$ 500 million of an undrawn Revolving Credit Facility. The DIP-to-exit financing was collateralized by assets owned by LATAM and by certain of its subsidiaries. The Junior DIP contemplated a subordinate priority to the rest of the credits.

On October 18, 2022, the Bridge Loans were partially repaid by; (i) a Note issued from registration under U.S. Securities Act of 1933, as amended (“the “Securities Act”), pursuant to Rule 144A and Regulation S, both under the Securities Act, due in 2027 (the “5 Year Note”), with a total principal amount of US$ 450 million, and (ii) a Note issued from registration under the Securities Act pursuant to Rule 144A and Regulation A, both under the Securities Act, due in 2029 (the “7 Year Note”), with a total principal amount of US$ 700 million.

In the context of the Company’s exit from the Chapter 11 proceedings on November 3, 2022, the DIP-to-Exit financing was fully repaid with the funds from the exit financing issued by the Company, which included US$350 million corresponding to an incremental loan Term B; US$450 million in senior secured notes due 2027, US$700 million in senior secured notes due 2029 and a Term Financing of US$1,1 billion, with part of the proceeds from the capital increase implemented in the context of the reorganization process for a total of approximately US$10,3 billion, through the issuance of new payment shares and convertible notes.

On March 31, 2021, the United States Court for the Southern District of New York approved and, subsequently, on April 13, 2021, issued an order approving the motion presented by the Company to extend certain leases of 3 aircraft.

(4)

On June 17, 2021, the United States Court for the Southern District of New York approved the motion presented by the Company to reject the lease of an aircraft financed under a financial lease in the amount of US$130.7 million.

(5)

On June 30, 2021, the United States Court for the Southern District of New York approved the motion filed by the Company to reject the lease contract for 3 aircraft financed under a financial lease in the amount of US$ 307.4 million.

(6)

On November 1, 2021, the United States Court for the Southern District of New York approved the motion filed by the Company to reject the lease contract for 1 engine financed under a financial lease in the amount of US$ 19.5 million.

Balances by currency of interest bearing loans are as follows:

	As of		As of
	December 31,		December 31,
	2022		2021
Currency	ThUS$		ThUS$

Brazilian real		314,322		338,953
Chilean peso (U.F.)		157,288		639,710
US Dollar		4,093,816		6,457,181
Total		4,565,426		7,435,844

Interest-bearing loans due in installments to December 31, 2022

Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.

				Nominal values														Accounting values
						More than		More than		More than								More than		More than		More than
				Up to		90 days		one to		three to		More than		Total		Up to		90 days		one to		three to		More than		Total			Annual
		Creditor		90		to one		three		five		five		nominal		90		to one		three		five		five		accounting			Effective		Nominal
Tax No.	Creditor	country	Currency	days		year		years		years		years		value		days		year		years		years		years		value		Amortization	rate		rate
				ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			%		%
Bank loans
0-E	SANTANDER	Spain	US$		-		-		70,951		-		-		70,951		173		-		70,951		-		-		71,124	Quaterly		7,26		7,26
0-E	GOLDMAN SACHS	U.S.A.	US$		2,750		8,250		22,000		1,067,000		-		1,100,000		30,539		8,250		22,000		939,760		-		1,000,549	Quaterly		18.46		13.38
Obligations with the public
97.036.000- K	SANTANDER	Chile	UF		-		-		-		-		156,783		156,783		505		-		-		-		156,783		157,288	At Expiration		2.00		2.00
97.036.000- K	SANTANDER	U.S.A.	US$		-		-		-		-		3		3		-		-		-		-		3		3	At Expiration		1,00		1,00
0 - E	WILMINGTON TRUST COMPANY	U.S.A.	US$		-		-		-		450,000		700,000		1,150,000		-		32,878		-		430,290		669,340		1,132,508	At Expiration		15.00		13,38
Guaranteed obligations
0-E	BNP PARIBAS	U.S.A.	US$		1,761		6,907		22,890		26,035		126,605		184,198		2,637		6,907		22,212		25,627		126,048		183,431	Quaterly		5,76		5,76
0-E	WILMINGTON TRUST COMPANY	U.S.A.	US$		2,208		6,110		32,620		33,210		67,457		141,605		2,233		6,110		32,620		33,210		67,457		141,630	Quaterly/Monthly		8.20		8.20
-	SWAP Received aircraft	-	US$		-		-		-		-		-		-		-		-		-		-		-		-	Quaterly		-		-
Other guaranteed obligations
0-E	CREDIT AGRICOLE	France	US$		-		14,667		29,333		231,000		-		275,000		3,837		14,667		26,153		228,880		-		273,537	Quaterly		8,24		8,24
0-E	MUFG	U.S.A.	US$		11,345		34,624		66,419		-		-		112,388		11,404		34,624		66,419		-		-		112,447	Quaterly		6.23		6.23
0-E	CITIBANK	U.S.A.	US$		-		-		-		-		-		-		1470						-		-		1,470	At Expiration		1,00		1,00
0-E	EXIM BANK	U.S.A.	US$		-		-		17,737		36,431		32,444		86,612		237		-		17,738		36,431		32,444		86,850	Quaterly		2.01		1.78
Financial leases
0-E	CITIBANK	U.S.A.	US$		6,825		5,689		-		-		-		12,514		6,888		5,689		-		-		-		12,577	Quaterly		6.19		5.47
0-E	BNP PARIBAS	U.S.A.	US$		6,596		20,048		1,521		-		-		28,165		6,776		20,048		1,516		-		-		28,340	Quaterly		5.99		5.39
0-E	NATIXIS	France	US$		6,419		19,341		53,207		55,696		104,475		239,138		8,545		19,341		52,881		55,478		103,905		240,150	Quaterly		6.44		6.44
0-E	US BANK	U.S.A.	US$		16,984		51,532		84,177		-		-		152,693		17,831		51,532		79,805		-		-		149,168	Quaterly		4.06		2.85
0-E	PK AIRFINANCE	U.S.A.	US$		1,533		4,664		6,393		-		-		12,590		1,579		4,664		6,393		-		-		12,636	Quaterly		5.97		5.97
0-E	EXIM BANK	U.S.A.	US$		-		-		113,668		180,260		152,581		446,509		1,923		-		112,666		178,672		151,236		444,497	Quaterly		3.58		2.79
0-E	BANK OF UTAH	U.S.A.	US$		2321		6568		20990		30557		121801		182,237		2321		6568		20990		30557		121801		182,237	Monthly		10,45		10,45
Others loans
0-E	Various (*)		US $		2,028		-		-		-		-		2,028		2,028		-		-		-		-		2,028	At Expiration		-		-
	Total				60,770		178,400		541,906		2,110,189		1,462,149		4,353,414		100,926		211,278		532,344		1,958,905		1,429,017		4,232,470

(*)	Obligation to creditors for executed letters of credit.

Interest-bearing loans due in installments to December 31, 2022

Debtor: TAM S.A. and Subsidiaries, Tax No. 02.012.862/0001-60, Brazil

Nominal values Accounting values

More than More than More than More More than More than More than More

Up to 90 days one to three to than Total Up to 90 days one to three to than Total Annual

Creditor 90 to one three five five nominal 90 to one three five five accounting Effective Nominal

Tax No. Country Currency days year years years years value days year years years years value Amortization rate rate

ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ % %

Bank loans

0-E Merril Lynch Credit

Products LLC U.S.A. BRL 304,549 - - - - 304,549 314,322 - - - - 314,322 Monthly 3,95 3,95

Financial lease

0-E NATIXIS France US $ 510 1,530 4,080 4,080 7,846 18,046 1,050 1,530 4,080 4,080 7,894 18,634 Semiannual/Quaterly 7.23 7.23

Total 305,059 1,530 4,080 4,080 7,846 322,595 315,372 1,530 4,080 4,080 7,894 332,956

Total consolidated 365,829 179,930 545,986 2,114,269 1,469,995 4,676,009 416,298 212,808 536,424 1,962,985 1,436,911 4,565,426

Interest-bearing loans due in installments to December 31, 2021

Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.

				Nominal values												Accounting values
						More than		More than		More than		More						More than		More than		More than		More
				Up to		90 days		one to		three to		than		Total		Up to		90 days		one to		three to		than		Total			Annual
		Creditor		90		to one		three		five		five		nominal		90		to one		three		five		five		accounting			Effective		Nominal
Tax No.	Creditor	country	Currency	days		year		years		years		years		value		days		year		years		years		years		value		Amortization	rate		rate
				ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			%		%
Loans to exporters
0-E	CITIBANK	U.S.A.	US$		114,000		-		-		-		-		114,000		123,366		-		-		-		-		123,366	At Expiration		2.96		2.96
76.645.030-K	ITAU	Chile	US$		20,000		-		-		-		-		20,000		22,742		-		-		-		-		22,742	At Expiration		4.20		4.20
0-E	HSBC	England	US$		12,000		-		-		-		-		12,000		13,053		-		-		-		-		13,053	At Expiration		4.15		4.15
Bank loans
97.023.000-9	CORPBANCA	Chile	UF		10,106		-		-		-		-		10,106		11,040		-		-		-		-		11,040	Quaterly		3.35		3.35
0-E	SANTANDER	Spain	US$		-		-		106,427		-		-		106,427		135		-		106,427		-		-		106,562	Quaterly		2.80		2.80
0-E	CITIBANK	U.S.A.	UF		60,935		-		-		-		-		60,935		64,293		-		-		-		-		64,293	At Expiration		3.10		3.10
Obligations with the public
97.030.000-7	BANCOESTADO	Chile	UF		-		159,679		-		-		343,218		502,897		49,584		159,679		-		-		355,114		564,377	At Expiration		4.81		4.81
0-E	BANK OF NEW YORK	U.S.A.	US$		-		-		700,000		800,000		-		1,500,000		187,082		-		698,450		803,289		-		1,688,821	At Expiration		7.16		6.94
Guaranteed obligations
0-E	BNP PARIBAS	U.S.A.	US$		16,079		12,412		34,958		37,891		97,135		198,475		17,926		12,412		34,044		37,466		96,379		198,227	Quaterly		1.48		1.48
0-E	MUFG	U.S.A.	US$		29,054		11,661		32,639		34,970		58,388		166,712		31,375		11,661		32,188		34,733		57,983		167,940	Quaterly		1.64		1.64
0-E	WILMINGTON TRUST	U.S.A.	US$		-		2,209		24,703		32,327		85,119		144,358		-		2,209		24,703		32,327		85,119		144,358	Quaterly/Mensual		3.17		1.60
	COMPANY

-	SWAP Received aircraft	-	US$		10		-		-		-		-		10		10		-		-		-		-		10	Quaterly		-		-
Other guaranteed obligations
0-E	CREDIT AGRICOLE	France	US$		273,199		-		-		-		-		273,199		274,403		-		-		-		-		274,403	At Expiration		1.82		1.82
0-E	MUFG	U.S.A.	US$		7,551		33,131		91,435		24,816		-		156,933		8,259		33,131		91,255		24,816		-		157,461	Quaterly		1.72		1.72
0-E	CITIBANK	U.S.A.	US$		-		600,000		-		-		-		600,000		95		600,000		-		-		-		600,095	At Expiration		2.00		2.00
0-E	BANK OF UTAH	U.S.A.	US$		-		1,644,876		-		-		-		1,644,876		-		1,630,390		-		-		-		1,630,390	At Expiration		22.71		12.97
0-E	EXIM BANK	U.S.A.	US$		-		-		-		25,876		37,014		62,890		183		-		-		25,876		37,014		63,073	Quaterly		1.84		1.84
Financial leases
0-E	CREDIT AGRICOLE	France	US$		682		1,370		-		-		-		2,052		694		1,370		-		-		-		2,064	Quaterly		3.68		3.23
0-E	CITIBANK	U.S.A.	US$		19,101		52,371		12,513		-		-		83,985		19,198		52,371		12,359		-		-		83,928	Quaterly		1.37		0.79
0-E	BNP PARIBAS	U.S.A.	US$		7,216		19,537		28,165		-		-		54,918		7,313		19,537		27,905		-		-		54,755	Quaterly		1.56		0.96
0-E	NATIXIS	France	US$		1,335		15,612		52,010		54,443		138,058		261,458		4,472		15,612		51,647		54,064		137,430		263,225	Quaterly		2.09		2.09
0-E	US BANK	U.S.A.	US$		16,601		50,373		135,201		17,492		-		219,667		17,755		50,373		127,721		17,188		-		213,037	Quaterly		4.03		2.84
0-E	PK AIRFINANCE	U.S.A.	US$		800		3,842		11,562		647		-		16,851		903		3,842		11,562		647		-		16,954	Quaterly		1.88		1.88
0-E	EXIM BANK	U.S.A.	US$		-		-		-		248,354		284,773		533,127		1,771		-		-		244,490		280,341		526,602	Quaterly		2.88		2.03
Others loans
0-E	Various (*)		US$		55,819		-		-		-		-		55,819		55,819		-		-		-		-		55,819	At Expiration		-		-
	Total				644,488		2,607,073		1,229,613		1,276,816		1,043,705		6,801,695		911,471		2,592,587		1,218,261		1,274,896		1,049,380		7,046,595

(*) Obligation to creditors for executed letters of credit.

Interest-bearing loans due in installments to December 31, 2021

Debtor: TAM S.A. and Subsidiaries, Tax No. 02.012.862/0001-60, Brazil

Nominal values Accounting values

More than More than More than More More than More than More than More

Up to 90 days one to three to than Total Up to 90 days one to three to than Total Annual

Bank Creditor 90 to one three five five nominal 90 to one three five five accounting Effective Nominal

loans Tax No. Country Currency days year years years years value days year years years years value Amortization rate rate

ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ % %

0-E NCM Netherlands US$ 619 - 324 - - 943 666 - 324 - - 990 Monthly 6.01 6.01

0-E BANCO BRADESCO Brazil BRL 74,661 - - - - 74,661 98,864 - - - - 98,864 Monthly 4.33 4.33

0-E Merril Lynch Credit

Products LLC U.S.A. BRL 185,833 - - - - 185,833 240,089 - - - - 240,089 Monthly 3.95 3.95

Financial lease

0-E NATIXIS France US$ 433 2,482 2,872 11,539 - 17,326 637 2,481 2,872 11,539 - 17,529 Quaterly 2.74 2.74

0-E GA Telessis LLC U.S.A. US$ 320 1,147 2,695 2,850 3,987 10,999 409 1,147 2,695 2,850 3,987 11,088 Monthly 14.72 14.72

Others loans

0-E DEUTCHEBANK (*) Brazil US$ 20,689 - - - - 20,689 20,689 - - - - 20,689 At Expiration - -

Total 282,555 3,629 5,891 14,389 3,987 310,451 361,354 3,628 5,891 14,389 3,987 389,249

Total consolidated 927,043 2,610,702 1,235,504 1,291,205 1,047,692 7,112,146 1,272,825 2,596,215 1,224,152 1,289,285 1,053,367 7,435,844

(*)	Obligation to creditors for executed letters of credit

(b) Lease Liability:

The movement of the lease liabilities corresponding to the years reported are as follow:

							Lease
							Liability
	Aircraft			Others			total
	ThUS$			ThUS$			ThUS$
Opening balance as January 1, 2020		3,042,231			129,926			3,172,157
New contracts		-			543			543
Lease termination (*)		(7,435	)		(285	)		(7,720	)
Renegotiations		(35,049	)		4,919			(30,130	)
Payments		(131,427	)		(36,689	)		(168,116	)
Accrued interest		158,253			9,348			167,601
Exchange differences		-			(7,967	)		(7,967	)
Cumulative translation adjustment		-			(38	)		(38	)
Other increases (decreases)		-			(5,324	)		(5,324	)
Changes		(15,658	)		(35,493	)		(51,151	)
Closing balance as of December 31, 2020		3,026,573			94,433			3,121,006
Opening balance as January 1, 2021		3,026,573			94,433			3,121,006
New contracts		518,478			875			519,353
Lease termination (*)		(724,193	)		(5,300	)		(729,493	)
Renegotiations		101,486			5,717			107,203
Payments		(95,831	)		(24,192	)		(120,023	)
Accrued interest		88,245			8,334			96,579
Exchange differences		-			3,356			3,356
Cumulative translation adjustment		-			(2,332	)		(2,332	)
Other increases (decreases)		(31,097	)		(3,914	)		(35,011	)
Changes		(142,912	)		(17,456	)		(160,368	)
Closing balance as of December 31,2021		2,883,661			76,977			2,960,638
Opening balance as January 1, 2022		2,883,661			76,977			2,960,638
New contracts		354,924			13,019			367,943
Lease termination (*)		(19,606	)		-			(19,606	)
Renegotiations		(76,233	)		(4,198	)		(80,431	)
Exit effect of chapter 11 (**)		(995,888	)		-			(995,888	)
Payments		(154,823	)		(26,172	)		(180,995	)
accrued interest		142,939			9,194			152,133
Exchange differences		-			2,279			2,279
Subsidiaries conversion difference		(2	)		7,463			7,461
other variations		-			2,920			2,920
Changes		(748,689	)		4,505			(744,184	)
Closing balance as of December 31,2022		2,134,972			81,482			2,216,454

(*) As of December 31, 2022 these correspond to anticipated lease terminations. For December 31, 2021 and 2020 these correspond to fleet rejections.

(**)	Corresponds to the effect of emergence from Chapter 11 ThUS$679,273 associated with claims (Derecognition of assets for right of use for ThUS$639,728 (See Note 24 (4)) and conversion of Notes for ThUS$39,545) and ThUS$316,615 due to IBR rate change.

The company recognizes the interest payments related to the lease liabilities in the consolidated result under Financial expenses (See Note 26 (c)).

(c)	Hedge derivatives

	Current liabilities				Non-current liabilities				Total hedge derivatives
	As of		As of		As of		As of		As of		As of
	December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
	2022		2021		2022		2021		2022		2021
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$

Fair value of interest rate derivatives		-		2,734		-		-		-		2,734

Total hedge derivatives		-		2,734		-		-		-		2,734

(d) Derivatives that do not qualify for hedge accounting

	Current liabilities				Non-current liabilities				Total derivatives of no coverage
	As of		As of		As of		As of		As of		As of
	December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
	2022		2021		2022		2021		2022		2021
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$

Derivative of foreign currency not registered as hedge		-		2,937		-		-		-		2,937

Total derived not qualify as hedge accounting		-		2,937		-		-		-		2,937

The foreign currency derivatives correspond to options, forwards and swaps.

Hedging operation

The fair values of net assets/ (liabilities), by type of derivative, of the contracts held as hedging instruments are presented below:

	As of		As of
	December 31,		December 31,
	2022		2021
	ThUS$		ThUS$

Interest rate swaps (1)		8,816		(2,734	)
Fuel options (2)		12,594		17,641
Foreign currency derivative R$/US$ (3)		191		-

(1)

They cover the significant variations in the cash flows associated with the market risk implicit in the increases in the 3-month LIBOR interest rate, SOFR, among others, for long-term loans originated by the acquisition or rental of aircraft and Bank credits. These contracts are recorded as cash flow hedge contracts.

(2)	Hedge significant variations in cash flows associated with market risk implicit in the changes in the price of future fuel purchases. These contracts are recorded as cash flow hedges.

(3)	Hedge significant variations in expected cash flows associated with the market risk implicit in changes in exchange rates, particularly the BRL/R$. These contracts are recorded as cash flow hedge contracts.

The Company only maintains cash flow hedges. In the case of fuel hedges, the cash flows subject to such hedges will occur and will impact results in the next 12 months from the date of the consolidated statement of financial position.

All hedging operations have been performed for highly probable transactions, except for fuel hedge. See Note 3.

See Note 24 (h) for reclassification to profit or loss for each hedging operation and Note 17 (b) for deferred taxes related.