PE Firm Matlin Should Pay $17M To Brazilian Airline: LAN

Law360, New York (January 18, 2012, 6:45 PM EST) -- An affiliate of LAN Airlines SA told a New York state appeals court Wednesday that private equity firm MatlinPatterson Global Advisers LLC is liable for $17 million the unit loaned to a Brazilian carrier before a third airline bought it.

Atlantic Aviation Investments LLC, an affiliate of Chilean airline LAN, says it loaned $17 million to struggling Brazilian airline VRG Linhas Aereas SA, which was owned by now-bankrupt Varig Logistica SA and allegedly controlled by MatlinPatterson and others.

LAN hoped to convert its loan into an...
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