Latam Air Creditors Seek to Sue Delta, Qatar Over Nixed Planes

Latam Airlines Group SA creditors are trying to sue Delta Air Lines Inc. and Qatar Airways QCSC, alleging they ripped off Latam in the run-up to bankruptcy.

Delta and Qatar Airways, both major Latam shareholders, backed out of commitments to buy or lease aircraft from the Chilean airline just before it filed for bankruptcy, according to court papers. The deals amount to so-called fraudulent transfers because they short-changed Latam while it was in severe financial distress, the company’s junior creditors argue.

As the pandemic grounded flights across the globe, Delta paid Santiago-based Latam just $62 million in lieu ...