| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers L > Headlines for Latam Airlines Group SA > News item |
Latam Airlines creditors agree that exclusivity should be terminated
By Sarah Lizee
Olympia, Wash., Dec. 22 – An informal group of Latam Airlines Group, SA creditors said they support a motion by the official committee of unsecured creditors to terminate the company’s exclusive periods to file and solicit votes on a Chapter 11 plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
Like the committee, the informal creditor group said it has serious concerns with the debtors’ plan process and the plan.
The group said the debtors propose to provide enhanced recoveries to insider shareholders and certain preferred creditors in violation of the bankruptcy code’s fundamental principles of fairness and priority.
The plan “unfairly and inappropriately discriminates” between the general unsecured claims against the Latam parent by providing the preferred creditor group with markedly better recoveries than other members of the same class, the informal group of creditors said.
The group also noted that the debtors haven’t meaningfully engaged with Azul SA, which has presented an alternative proposal to the debtors that would supposedly yield general unsecured creditors three times as much as what they’d receive under the current plan, which is less than 20%.
“Because the debtors have refused to engage with Azul, the committee, or other major creditor groups in any meaningful way, have instead pursued a flawed process culminating in an unconfirmable plan, and are unlikely to pursue any value-maximizing alternative, cause exists to terminate exclusivity,” the official committee had said in its motion.
Latam Airlines 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.