Latam Air Creditors Say They’re Working on Alternative Deal

Some Latam Airlines Group SA creditors are so displeased with the carrier’s strategy to exit bankruptcy that they’re working on an alternative proposal, according to court papers.

A group of investment firms is working with Latam Air’s official low-ranking creditor group “to explore the development and consummation of potential alternative” transactions, including a sale to rival Azul SA, court papers show. As of Dec. 29, the group included Avenue Capital Management, Pentwater Capital Management and Invictus Global Management, disclosures show.

The investors, owed hundreds of millions of dollars by Latam, contend the existing plan contains ...