LATAM Airlines Defends $900M Shareholder DIP As Best Deal

Law360 (July 29, 2020, 7:14 PM EDT) -- LATAM Airlines Group defended its proposed $900 million investor-provided debtor-in-possession loan before a New York bankruptcy judge on Wednesday from claims by creditors that it's a scheme by shareholders to make sure their equity survives the Chapter 11.

In their opening statements in a remote hearing before U.S. Bankruptcy Judge James Garrity Jr., counsel for LATAM and its creditors argued whether a provision in the DIP package allowing the shareholder lenders to buy discount stock in the post-bankruptcy airline was a scheme by investors or a benefit for the company and whether there was a better deal available for LATAM....

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