New York Debtor LATAM Airlines Sues Associated Energy Group, LLC in $800k Clawback Action
May 25, 2022, US Bankruptcy Court for the Southern District of New York – Debtors in the bankruptcy case of LATAM Airlines Group S.A., et al., bring a lawsuit against Associated Energy Group, LLC to clawback $838,401.80 of alleged preferential and fraudulent transfers.
The complaint avers that during the ninety (90) days before the bankruptcy petition date, LATAM Airlines Group S.A. (LATAM) operated its business which allowed transfer of property to certain entities, including Defendant.
LATAM argues that the alleged transfers were made for or on account of antecedent debts and while LATAM was insolvent. Additionally, LATAM claims that it did not receive reasonably equivalent value in exchange for the alleged transfers and that it “intended to incur, or believed that it would incur” debts that would be beyond its ability to pay as such debts matured.
LATAM requests the Court to avoid all avoidable transfers under section 547(b) of the Bankruptcy Code, or, in the alternative, pursuant to section 548 of the Bankruptcy Code. It also seeks disallowance of any claims of Defendant pursuant to section 502(d) of the Bankruptcy Code.
LATAM Airlines Group S.A. et al. v. Associated Energy Group, LLC (In re LATAM Airlines Group S.A. et al.), AP No. 22-1091, US Bankruptcy Court for the Southern District of New York.