LATAM Airlines bankruptcy plan moves forward after creditor appeals fail

Updates with additional information

August 31 (Reuters)LATAM Airlines LTM.SN ohn Wednesday fended off two challenges to its bankruptcy reorganization plan, bringing the carrier one step closer to exiting Chapter 11 after seeking creditor protection in the early months of the pandemic.

LATAM said in a statement, he said he was “satisfied” with a US bankruptcy court ruling upholding his reorganization plan in which two sets of creditors lost their appeals.

LATAM, whofiled for bbankrupt in 2020, got court approval to exit Chapter 11 in June, after presenting a reorganization plan that aims to inject around $8 billion into the airline through a combination of a capital increase, convertible bond issue and new debt.

The appeal against the approved plan came from the TLA Claimholder Group, which owns shares in subsidiary LATAM Airlines Brasil, and a group of unsecured claimants including Avenue Capital Management II, Corre Partners Management, CQS (US), HSBC Bank Plc, Invictus Global Management, Livello Capital Management LP and Pentwater Capital Management LP.

The groups’ appeals have been met with opposition from other shareholder entities and the airline itself.

Earlier this week, LATAM Airlines said in a statement that it expects to emerge from bankruptcy in the last quarter of this year, proposing a slightly modified reorganization plan to reach $11.5 billion in revenue by 2024.

(Reporting by Fabian Cambrero and Dietrich Knauth; Writing by Isabel Woodford; Editing by Christian Plumb)

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