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.

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