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Latam Airlines Creditors Say Debt Deal Wrongly Favors Equity

  • Plan is ‘rich deal’ for shareholders, creditors attorney says
  • Reorganization plan calls for selling $800 million of stock
Latam Airlines Operations At Guarulhos International Airport As Company Releases Earnings
Photographer: Victor Moriyama/Bloomberg

Latam Airlines Group SA’s reorganization plan wrongly favors top shareholders over creditors and will fail to win court approval, an official committee of unsecured creditors told the judge overseeing the Chilean air carrier’s bankruptcy.

“The plan is a very rich deal for the inside shareholders,” Allan S. Brilliant, an attorney for the committee, said during a court hearing Tuesday.