Mexico City, Mexico — A New York Court has approved the restructuring plan of Aeromexico after the airline settled with remaining creditors. The Bankruptcy Court of the Southern District of New York approved Aeromexico’s restructuring plan under Chapter 11 after the airline reached an agreement with the rest of its creditors who opposed the reorganization plan.
Among the creditors that had opposed Aeromexico’s plan was the firm Invictus Global Management, with which the company reached an $2 million agreement. In addition, an agreement was also closed with the group of creditors OpCo, who also opposed several points in the plan despite the fact that the airline’s restructuring plan was approved by 88 percent of its creditors.
However, several groups filed objections before the New York Court. With this, the company reached an agreement with the group of Ad Hoc creditors, for which a negotiation for $40 million was reached.
Previously, several creditors had expressed disagreement with the way in which the plan had been structured, noting that there was a preference for existing shareholders and objecting to some share payments to retain directors and shareholders such as Delta Air Lines.
Aeroméxico’s restructuring plan contemplates a capital financing of $720 million and a debt financing in bonds of $762.5 million.
The Apollo Global Management fund will be the airline’s largest shareholder, with a 22.38 percent stake, while Delta Air Lines, which previously held 49 percent of the airline, will hold 20 percent of the share capital.
A group of Mexican shareholders made up of businessmen Eduardo Tricio Haro, Valentín Diez Morodo, Antonio Cosío Pando and Jorge Esteve Recolons, will have a 4.10 percent stake, while the new investors and creditors who capitalize their recognized credits in representative shares of the future capital stock of Aeromexico will hold the remaining 53.52 percent.