A bankruptcy judge extended Latam Airlines Group SA’s exclusive control over its chapter 11 proceedings until early March despite opposition from certain unsecured creditors who have been sidelined in the Chilean airline’s proposed capital raise, WSJ Pro Bankruptcy reported. Bankruptcy Judge James Garrity of the U.S. Bankruptcy Court in Manhattan yesterday granted a request by Latam to extend its exclusivity, while denying a competing bid by certain unsecured creditors to terminate the company’s exclusive control so that a potential alternative could be put forth. Judge Garrity said that Latam, the largest airline group in Latin America, has formulated its chapter 11 plan in good faith, taking into consideration the company’s complex operations along with sizable assets and liabilities. He said that granting this short extension will allow Latam to continue making progress toward a value-maximizing restructuring and won’t harm stakeholders in the chapter 11 cases, jointly filed by Latam and its affiliates in 2020.
