LATAM Landmark Chapter 11 Exit Featured by IFLR

December 16, 2022

Cleary Gottlieb has been featured in IFLR for its successful representation of LATAM Airlines Group S.A. (LATAM) in its Chapter 11 reorganization.

On November 3, Cleary represented LATAM, Latin America’s largest air carrier, and certain of its affiliates in Chile, Brazil, Peru, Colombia, Ecuador, the Cayman Islands, and the United States, in the company’s successful exit from a first-of-its-kind cross-border debt restructuring before the United States Bankruptcy Court for the Southern District of New York.

On December 14, Cleary helped LATAM earn a favorable ruling issued by the U.S. Court of Appeals for the Second Circuit in the last remaining dispute concerning its reorganization plan. This appeal decision is significant in that it again reaffirms the validity of LATAM’s plan—which was subjected to various litigation challenges, none of which have succeeded—and its treatment of its creditors in the Chapter 11 cases. The appeal is also significant in that it is the first time the Second Circuit has issued a decision on creditors’ entitlement to post-petition interest in Chapter 11 cases, where other circuits have also recently addressed similar issues in other complicated Chapter 11 cases.

Partners Richard Cooper, Lisa Schweitzer and Luke Barefoot led the LATAM team through the highly complex reorganization, which took over two years to complete. Partners Duane McLaughlin and Adam Brenneman and counsel Kara Hailey provided invaluable counsel and led the exit financing effort. Partners Jeffrey Rosenthal, David Herrington, and Abena Mainoo worked closely with the core team on leading the various litigation and appeals.

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