Latam Air creditors vote for bankruptcy exit plan

Bloomberg

A majority of Latam Airlines Group SA’s unsecured creditors have voted in favour of its proposed restructuring plan, easing the Chilean carrier’s path out of bankruptcy.
About 65% of the low-ranking creditors voted to accept the plan, the company said in a statement, giving Latam a crucial level of support before asking its bankruptcy judge to sign off on the deal later this month. The company will still have to defeat objections to the proposal from dissenting creditors who say the deal is unfair.
Under the proposal, Latam would raise around $5 billion by issuing shares and convertible notes to current stockholders and creditors as it exits Chapter 11 protection. Dissenters claim the plan wrongly favors some stakeholders and flouts bankruptcy rules.
Investment funds including SVPGlobal, Sculptor Capital Management and Sixth Street Partners are set to take ownership of the airline if the restructuring proposal wins court approval.