Chile’s LATAM Air receives backing by unsecured creditors in Chapter 11 exit plan

A LATAM Airways aircraft carrying a cargo of the Sinovac coronavirus illness (COVID-19) vaccine arrives at Carrasco Airport in Montevideo, Uruguay February 25, 2021. REUTERS/Mariana Greif

MEXICO CITY, Might 6 (Reuters) – Chile’s LATAM Airways acquired backing by a majority of its unsecured collectors in its Chapter 11 chapter exit plan, the airline mentioned Friday.

LATAM, which filed for chapter in america in 2020 after being hit by the coronavirus-related journey downturn, mentioned round 65% of its low-ranking collectors had backed the plan, which it mentioned was “truthful and regarded all stakeholders.”

A committee representing junior collectors filed an objection to the restructuring plan in court docket Monday, calling it “essentially flawed” and alleging it could improperly profit shareholders resembling Delta Airways (DAL.N) at their expense. L2N2WV2CM

LATAM Airways, created in 2012 following the merger of Chile’s LAN with Brazilian rival TAM and with working items in Chile, Brazil, Colombia and Peru, nonetheless has to carry dissenting stakeholders on board.

The plan, wherein LATAM hopes to boost $5.4 billion, has additionally acquired objections from a Chilean financial institution representing native bondholders and the U.S. Division of Justice’s chapter watchdog.

The airline’s attorneys will ask a New York choose to approve its proposal in court docket Might 17.

“LATAM continues to intention to finish the method and exit from Chapter 11 within the second half of 2022,” the airline mentioned in an announcement.

Reporting by Kylie Madry; Modifying by Stephen Coates

: .