XML 237 R59.htm IDEA: XBRL DOCUMENT

OTHER FINANCIAL LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure Of Other Liabilities Text Block Abstract

Schedule of composition of other financial liabilities

		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

Schedule of composition of interest bearing loans

		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.

(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.

(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.

Schedule of currency balances of interest bearing loans

		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

Schedule of interest-bearing loans due in installments Chile (2021)

								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

								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

Schedule of interest-bearing loans due in installments Chile (2021)

								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

								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

Disclosure of Movement of Lease Liabilities

										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

Schedule of 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

Schedule of derivatives of non coverage

		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

Schedule of hedging instruments

		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.