LATAM Creditors Say $1.4B Plane Lease Settlement Inflated

By Rick Archer (January 20, 2022, 4:06 PM EST) -- Unsecured creditors and bondholders of Chilean carrier LATAM Airlines Group SA are asking a New York bankruptcy judge to reject a proposed $1.4 billion settlement of lease claims against the airline, saying the claims are worth less than half that.

In objections filed Wednesday the unsecured creditors committee and the indenture trustee for a group of bondholders also argued the settlements deserve extra scrutiny because the claim holders are key supporters and beneficiaries of LATAM's Chapter 11 plan.

"Because the amount of the fleet settlements represents much more than the claimants' expected recovery in litigation, the court may conclude that the...

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