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LATAM Creditors’ Appeal Over $734 Million Financing Deal Tossed

May 10, 2022, 9:34 PM

A group of LATAM Airlines Group SA’s creditors lost its bid to quash the bankrupt airlines’ financing arrangements to pay SVPGlobal and other shareholders and creditors $734 million, clearing the company’s path to court confirmation of its reorganization.

U.S. District Judge Jesse Furman on Tuesday granted the Chilean airlines’ motion to dismiss an appeal by Banco del Estado de Chile, Columbus Hill Capital Management L.P., and other unsecured creditor groups.

The creditor group’s arguments that the financing agreements are unfair “are far from frivolous,” Furman said. But the group’s appeal must wait until the bankruptcy court has ruled on whether ...