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Interjet seeks agreements with creditors to avoid liquidation

Mexico City, Mexico — The Mexican airline Interjet, which went from being one of the main in the country to being at risk of bankruptcy, is hoping to reach an agreement with its creditors within a year, reported Argoss Partners, the firm in charge of negotiating with Interject’s creditors.

Shareholders of the company, which stopped operating in December 2020 amid the pandemic, agreed in April of 2021 to request protection while restructuring liabilities for a declared amount of $1.2 billion USD.

The directors of the firm in charge of negotiating with Interjet’s creditors, Argoss Partners, said they trust that a judge will approve, as soon as possible, the start of the legal process of commercial bankruptcy to achieve a deal regarding debts and avoid a possible liquidation of the company.

“The sooner we can (reach an agreement), the better,” Carlos Ortiz-Cañavate, one of the firm’s partners said Thursday in a video call interview with Ruters, but did not give projections on when they could fly again.

Interjet, operated by ABC Airlines, had been dragging financial problems since before the epidemic, including debts with the treasury, according to its representatives and statements from the head of the local tax authority (SAT) to local media.

Igor Marzo, director of Argoss Partners pointed out that as an individual creditor, Mexico’s tax adminstration SAT is the one who can claim most of the debt from the airline, adding that employees also have priority to collect.

The airline union with more than 5,000 employees started a strike in January demanding payment of back wages and benefits.

“It is clear that you have to restructure liabilities, but to continue negotiating you need a capital inflow,” Marzo said. “We are very (…) confident that the quality of the actors that are approaching will allow us to reach a very good deal,” he added.