RIO DE JANEIRO, BRAZIL – The U.S. government has urged the New York Court not to place LATAM’s judicial reorganization plan to a vote, which the airline presented in late November.
The request was submitted on January 7 by the United States Trustee, a U.S. Department of Justice body responsible for overseeing judicial reorganization proceedings in the country.
According to the agency, LATAM’s plan failed to provide sufficient information to creditors and shareholders.
The United States Trustee also pointed out that the airline omitted necessary data particularly with respect to small creditors. Should the New York Court agree with this position, LATAM’s creditors will only be able to vote on the restructuring plan after changes are made to the text.
Latin America’s largest airline, LATAM has been under judicial reorganization since 2020. In August 2021, the company’s commitment to short-term debt grew 65% in one year and reached US$10.9 billion.