Latam Airlines committee says company improperly solicited votes

Chicago, May 3 – Latam Airlines Group, SA’s official committee of unsecured creditors has filed to reserve its rights as it believes that the company improperly solicited votes in favor of the proposed joint Chapter 11 plan of reorganization, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

Latam sought approval of stipulations with Diehl Aerospace Inc., Spafax Medios Y Publicidad SpA, Comtech Aviation Services Pty. Ltd., Safran Ventilation Systems SAS and Safran Ventilation System USA, LLC in exchange for those claimants’ commitment to vote in favor of the proposed plan of reorganization.

The committee believes that Latam’s conduct “constituted solicitation of acceptances of a plan prior to the approval of a disclosure statement and without transmitting such approved disclosure statement to the creditors ‘at the time of or before such solicitation.’”

The committee does not object to the allowance of the claims in the stipulations; however, it reserves all other rights and remedies against the debtors and the claimants.

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

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