Delta will receive 20% new shares under Aeromexico’s restructuring plan.
U.S. airline Delta Air Lines will receive a 20% stake in Aeromexico as part of the Mexican airline’s financial restructuring plan, according to a document from a U.S. court handling the case.
→ Agreement between Latam and Delta expands to more than 20 routes in Americas.
Grupo Aeromexico, which operates the country’s largest airline, was hit hard by a slump in demand due to the coronavirus pandemic, so it filed for Chapter 11 bankruptcy restructuring in mid-2020.
“As a result, Delta will receive 20.0% of all new shares issued under the Chapter 11 Plan,” says a U.S. Southern District court document released Friday.
→ Aeromexico transforms its Gran Plan brand into Aeromexico Vacations.
According to the agreement, in order for Delta to have this participation, it must make an investment of US$100 million -in addition to the US$185 million it paid for the Apollo Global Management loan- which will be converted into shares, reported Reuters.
This year, Delta acquired US$185 million in financing that Grupo Aeroméxico received from Apollo Global Management. As part of the transaction, the Mexican airline obtained a US$1 billion loan from Apollo’s funds.
Related Topics
EU to Susbsidise High Volume of Sustainable Fuel to Boost Its Use in Aviation
Lufthansa Group and ITA Airways Expand Agreement: Now Including Long-Haul Flights
Finnair to Resume Flights to Toronto in 2026 After 11-Year Hiatus
Ryanair Purchases 30 New LEAP-1B Engines
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.