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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!