Many Latin American companies have used Chapter 11 of the United States Bankruptcy Code (the Bankruptcy Code) as a tool to effectuate a consensual balance sheet restructuring, especially for debt denominated in US dollars or governed by US law. The onset of the covid-19 pandemic also showed that Chapter 11 can also be used to effectuate a full financial and operational restructuring, as seen recently in the Chapter 11 cases of Aeromxico, Avianca and LATAM Airlines, among others. This chapter discusses the various features of Chapter 11 and the types of Chapter 11 cases that are available to aid a Latin American companys restructuring.
Chapter 11 is available to foreign companies
Whether a company can file for Chapter 11 in the United Sta…
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