Two groups of creditors oppose delay of Latam bankruptcy plan

New York, Oct. 22 (EFE) .- Two groups of creditors of Chilean airline Latam, Latin America’s largest, have presented objections to the airline’s request to extend for the fifth time and until November 26 is the deadline to submit your reorganization plan to come out of bankruptcy.

These are the Parent ad hoc Claimant Group, Latam’s largest unsecured creditors group with over $ 4 billion in claims and approximately $ 740 million in obligations, and the “Official Unsecured Creditors Committee” by Latam.

In a brief presented to Judge James Garrity, who presides over the bankruptcy court dealing with the Latam case, Parent ad hoc Claimant Group opposes an extension if it is not accompanied by a judge’s order requiring the parties to mediation. in some cases that have prevented Latam from proposing a Chapter 11 exit plan to date of US bankruptcy law.

“Despite the efforts and commitment of some parties over the past month, it has become very clear that the parties fundamentally disagree on key legal issues,” the group said before pointing out that a further extension to their terms that the above “will not help the matter move forward.

Thus, this group, which supported the fourth extension for the presentation of the plan, asks the judge to appoint a mediator who “can help advance the negotiations in progress”.

“In the absence of a mediator, there is no reason to believe that the last request of the debtors (Latam) for an exclusive extension will produce more progress than the previous ones”, they underline before writing in bold that the “debtors are still far from having a consensual and verifiable plan to present to the Court”

For its part, the official Committee of unsecured creditors evokes its “growing concerns”.

“The Committee remains deeply concerned that a further extension could be used simply to pressure creditors to adhere to a plan that rewards shareholders who run out of money because of their equity stakes at the expense of unsecured creditors “, we read in the brief presented to the judge. by this second group.

Latam asked for a new extension on October 14, the fifth, to extend until November 26 the deadline for presenting his reorganization plan and on which the judge who is handling his case in New York will have to rule next week.

Source of the article

Disclaimer: This article is generated from the feed and is not edited by our team.

Source link

Raymond I. Langston

Leave a Reply

Your email address will not be published. Required fields are marked *