Aeromexico Emerges from Chapter 11 Process

Aeromexico Emerges from Chapter 11 Process

DALLAS – After a 21-month restructuring process, Aeromexico (AM) has emerged from Chapter 11 bankruptcy and is now worth US$2.56bn.

In detail, the airline equitized recognized unsecured claims (approximately US$2.3bn) and certain claims under its DIP Facility (approximately US$750m) obtained during the Chapter 11 Process, as well as new equity contributions of more than US$700m, as part of the Court-Approved Joint Plan of Reorganization.

Apollo Management Holdings, based in New York, is the airline’s largest shareholder, having financed the airline with US$1bn early in the bankruptcy process. Delta Air Lines (DL), which operates flights between the United States and Mexico in partnership with AM, now owns 20% of the airline, down from 49% prior to bankruptcy.

Photo: Roland Rimoczi/Airways

Comments from Aeromexico

“We look forward to starting a new chapter in our company’s history, backed by a sound financial base solid capital structure, and investors who have full confidence in our future,” said AM CEO Andres Conesa.

Aeromexico says it will invest more than US$5bn in its fleet and in other necessary initiatives over the next five years to combine customer and staff experience improvements.

Mexico’s flagship airline, which is in full observance of all applicable Mexican laws and requirements under public concessions granted by the Federal Government and controlled by Mexican investors, now has 84 routes after continuing to operate during the restructuring.

The carrier currently operates 15 US flights from Mexico City and Guadalajara.

Featured image: Aeromexico Boeing 787. Photo: Kochan Kleps/Airways

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