"Google files $8 million claim against LATAM"

" \n This week, Google filed a motion for relief to allow termination of its agreements with LATAM Airlines Group and discontinue the services it provides. \n \n\n \n According to the giant tech company, LATAM owes over US$8.2 million for unpaid services. Let\u2019s investigate further. \n \n\n \n LATAM owes over US$8 million to Google for unpaid services. Photo: Getty Images \n \n\n \n LATAM doesn\u2019t need Google \n \n\n \n LATAM Airlines Group \u00a0filed for a Chapter 11 bankruptcy on 26 May . A couple of months later, LATAM Brazil joined the reorganization process. \n \n\n \n Meanwhile, LATAM Argentina (which already ceased operations) and LATAM Paraguay are not included in the filing. \n \n\n \n The largest South American carrier is trying to reduce costs, labor, and fleet. It is also looking for over US$2 billion in Debtor-In-Possession financing. \n \n\n \n In the meantime, LATAM has also stopped paying the services of some providers, like Google. \n \n\n \n According to Google\u2019s filing, it provided an ads program. The services allowed LATAM \u201cto reach potential customers as they search for designated words and phrases or browse websites.\u201d Google also offered Cloud program services. \n \n\n \n On 20 September, the Silicon Valley company filed proofs of claim for unpaid services by LATAM. \n \n\n \n This is how much they owed: \n \n\n \n Aerovias de Integracion Regional: US$27,378.52 \n \n\n \n LATAM Airlines Ecuador: US$40,993.42 \n \n\n \n Fidelidade Viagens e Turismo: US$70,925.23 \n \n\n \n LATAM Airlines Peru: US$468,096.07 \n \n\n \n TAM Linhas Aereas: US$1,536,665.27 \n \n\n \n LATAM Airlines Group: US$6,105,378.12 \n \n\n \n Google added that if the Court doesn\u2019t grant relief, it will cause\u00a0 \u201csignificant hardship\u201d \u00a0because the company would be required to continue to provide services to LATAM without payment. In contrast, LATAM\u00a0 \u201cmay continue to operate its business without the services provided by Google.\u201d\u00a0 \n \n\n \n Google claims that LATAM doesn\u2019t need its services to continue operating. Photo:\u00a0 The Pancake of Heaven! via Wikimedia Commons . \n \n\n \n LATAM spent almost half a million in May \n \n\n \n For airlines and companies under Chapter 11, it is not uncommon to stop paying some suppliers. As they go through the reorganization process, these companies prioritize cash preservation. \n \n\n \n LATAM, like Avianca and Aeromexico, has taken some measures like rejecting leasing contracts or furloughing staff. Nevertheless, it is fascinating to see how much airlines spend on other services. \n \n\n \n Google included many bills in its filing for the New York Southern District Court. Some are small, a little over one dollar in services, but others are quite big. \n \n\n \n In May, LATAM Airlines Group spent US$454,600.63 in Google Cloud services, for instance. In July, it also spent US$532,500 on Retail ITA. \n \n\n \n We contacted the LATAM Airlines Group regarding this topic. The airline said, \n \n\n \n \u201cWe are in touch with the provider and following the procedures from the New York Court to resolve possible problems.\u201d \n \n\n \n The New York Court recently approved LATAM\u2019s DIP Financing for US$2.45 billion. Photo: Getty Images \n \n\n \n Where does LATAM stand now in its Chapter 11 process? \n \n\n \n The New York Court recently approved\u00a0 LATAM\u2019s modified US$2.45 billion DIP Financing . \n \n\n \n For the South American carrier, the approval was a relief after it got surprisingly rejected the first time due to\u00a0 court doubts regarding the better treatment individual shareholders would receive . \n \n\n \n LATAM also recently announced its intentions to reject the leasing contracts of 19 more airplanes . It has already returned 19 aircraft to the lessors. Now, the company plans to offload mainly Airbus A320 family planes. \n \n\n \n Finally, the Administrative Council for Economic Defense in Brazil approved Delta and LATAM\u2019s joint venture . \n "

"Google files $8 million claim against LATAM"

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