Aeromexico concludes its financial restructuring process

Mexico City, 17 Mar The airline Aeromexico reported on Thursday that it “successfully” concluded its financial restructuring process in the United States, after declaring bankruptcy in mid-2020. “Grupo Aeromexico (...) announced today that it has successfully concluded its financial restructuring process and has emerged from its Chapter 11 procedure following the Court's confirmation of its Restructuring Plan without objection and having met certain conditions,” the company said in a statement. On January 28, Aeromexico announced that it had obtained approval of its restructuring plan in the neighboring country by a judge of the Bankruptcy Court. They considered this fact to represent “the most important milestone in the company's restructuring procedure”. In addition, Aeromexico then explained that it would continue to “work with all its key participants to quickly get out of the process”, as happened this Thursday. Aeromexico explained that the capital value of the restructured company (“Equity Value Plan”) 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 control group of vote”. The group of investors, they shared, contributed $720 million in new capital. Additionally, the company explained, “key investors” are funding new debt for Aeromexico's exit of 762.5 million dollars, “totaling approximately $1.5 billion in new capital.” “At Aeromexico we are ready to fly with a 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 start a new chapter in the history of our company, supported by a strong financial base, a strong capital structure and investors with full confidence in our future,” said the company's CEO, Andrés Conesa, says the text. Finally, they assured that in the next five years they will invest $5 billion in fleet and will carry out “other key actions” to consolidate themselves. In recent days Aeromexico has gone through a turbulent situation on the Mexican Stock Exchange (BMV), its shares lost a lot of value and on Wednesday the airline was the title with the most downward variation at its close (-26.28%). The Mexican airline operates 84 domestic and international routes. The Mexican air sector, which lost revenues of $9.3 billion in 2020 due to the covid-19 crisis, according to the International Air Transport Association (IATA), is currently in recovery.