Creditors Rebuffed By U.S. Courts, Aerolineas Argentina Keeps Aloft

Creditors Rebuffed By U.S. Courts,
Aerolineas Argentina Keeps Aloft

BUENOS AIRES—Gaining a nationwide injunction through a rare legal proceeding that prevented creditors from seizing its client’s planes when they landed on U.S. soil, the Miami-based law firm KPKB helped to facilitate Aerolineas Argentinas' successful reorganization and keep flying.

Argentina’s largest commercial carrier with more than 15,000 employees and $1 billion in annual revenues, Aerolineas Argentina had commenced a concurso preventivo, one of the largest commercial reorganizations ever filed in Argentina.

To keep creditors from seizing company assets located in the U.S., KPKB commenced a 304 proceeding before the United States Bankruptcy Court, prohibiting creditors from pursuing claims against the airline and its assets in the U.S. and directing them into Argentine courts.

By barring the loss of crucial assets during reorganization, the law firm helped the company to stay in business and keep flying.