Latam Airlines shareholder group says company won’t share business plan

By Sarah Lizee

Olympia, Wash., July 30 – An informal group of Latam Airlines Group, SA shareholders asked the U.S. Bankruptcy Court for the Southern District of New York to direct the debtors to produce their business plan to the group, according to a motion filed Friday.

The company recently sought an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan. In its motion, the company said the proposed extension was justified because it has now developed its forward-looking business plan and is beginning the process of meeting with various key stakeholders to discuss the plan, and to begin discussions regarding the plan framework and raising exit capital.

“The ad hoc committee of shareholders is a ‘key stakeholder,’ as it is the sole representative of shareholders that are unaligned with the Cueto family,” the group said in its motion.

“Its members – many of whom sponsored the plan of reorganization in the ground-breaking Hertz bankruptcy for the benefit of Hertz shareholders – have requested the business plan with a view toward having shareholders lead an equity investment to facilitate the debtors’ exit from Chapter 11.”

However, the company has denied the group’s requests to review the plan, which has been shared with other stakeholders, including other shareholders, the group said.

“There is no justification for the debtors’ discriminatory treatment of their minority shareholders and their refusal to engage with them or provide them with this important information, which directly affects them,” the group said.

A hearing is scheduled for Aug. 26.

Latam is a Santiago, Chile-based airline. The company filed bankruptcy on May 25, 2020 under Chapter 11 case number 20-11254.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.