MatlinPatterson Liable For Loan To Brazilian Airline: Court

Law360, New York (February 8, 2012, 11:56 AM EST) -- A New York state appeals court ruled Tuesday that private equity firm MatlinPatterson Global Advisers LLC is liable for money that an affiliate of LAN Airlines SA loaned to a Brazilian carrier before a third airline bought it for $320 million.

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...
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