© Reuters. FILE PHOTO: A LATAM Airways airplane 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 (Reuters) – Chile’s LATAM Airways (OTC:) acquired backing by a majority of its unsecured collectors in its Chapter 11 chapter exit plan, the airline stated Friday.
LATAM, which filed for chapter in the US in 2020 after being hit by the coronavirus-related journey downturn, stated round 65% of its low-ranking collectors had backed the plan, which it stated was “truthful and regarded all stakeholders.”
A committee representing junior collectors filed an objection to the restructuring plan in courtroom Monday, calling it “essentially flawed” and alleging it will improperly profit shareholders akin to Delta Airways (NYSE:) at their expense. [L2N2WV2CM]
LATAM Airways, created in 2012 following the merger of Chile’s LAN with Brazilian rival TAM and with working models in Chile, Brazil, Colombia and Peru, nonetheless has to deliver dissenting stakeholders on board.
The plan, through which LATAM hopes to lift $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 legal professionals will ask a New York decide to approve its proposal in courtroom Could 17.
“LATAM continues to purpose to finish the method and exit from Chapter 11 within the second half of 2022,” the airline stated in a press release.