Aeromexico exits Chapter 11 of U.S. Bankruptcy Law
Aeromexico reported Thursday that it “successfully” concluded its financial restructuring process in the United States, after having filed for bankruptcy in mid-2020.
“Grupo Aeromexico announced today that it has successfully concluded its financial restructuring process and emerged from its Chapter 11 proceeding following the Court’s confirmation of its Restructuring Plan without objection and having satisfied certain conditions,” the company said in a statement.
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On January 28, Aeromexico announced that it had obtained the approval of its restructuring plan in the neighboring country by a bankruptcy court judge, EFE reported.
They considered this to be “the most important milestone in the company’s restructuring process”.
Aeromexico explained that it would continue to “work with all of its key participants to quickly exit the process,” as it did on Thursday.
Aeromexico detailed that the equity value of the restructured company (Plan Equity Value) is approximately US$2.56 billion and “among its main shareholders are funds managed by Apollo Global Management, Delta Air Lines, as well as existing and new Mexican investors that form the voting control group”.
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The group of investors, they shared, contributed US$720 million in new capital.
In addition, the company explained, “key investors” are funding new debt for the exit of Aeromexico for US$762.5 million, “totaling approximately US$1.5 billion in new capital”.
“At Aeromexico, we are ready to fly with new air. Today is a very exciting day for Aeromexico and we are ready to reach new heights as we emerge from Chapter 11. We are ready to begin a new chapter in the history of our company, supported by a strong financial base, a solid capital structure and investors with full confidence in our future,” said the company’s CEO, Andres Conesa, according to the text.
Finally, they assured that in the next five years they will invest 5,000 million dollars in fleet and will carry out “other key actions” to consolidate the company.
In the last few days Aeromexico has gone through a turbulent situation in the Mexican Stock Exchange (BMV), its shares lost a lot of value and on Wednesday the airline was the stock with the highest downward variation at the close (-26.28%).
The Mexican airline operates 84 domestic and international routes.
The Mexican airline industry, which lost 9.3 billion dollars in revenues in 2020 due to the covid-19 crisis, according to the International Air Transport Association (IATA), is currently in recovery.
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