Aeromexico Court Approval for DIP Financing Facility under Chapter 11

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Grupo Aeroméxico announced that following the previous relevant events dated August 13, August 19 and September 9, 2020, with respect to (a) securing the commitment for US$1,000 million senior secured superpriority multi-tranche debtor in possession term loan facility (the “DIP Facility”), (b) interim approval of the DIP Facility by Judge Shelley C. Chapman of the United States Bankruptcy Court for the Southern District of New York (the “Chapter 11 Court”), and (c) the funding of US$100 million of tranche 1 loans under the DIP Facility, Judge Chapman approved the DIP Facility on a final basis, which was a condition precedent to the availability of the undrawn portion of the tranche 1 loans (US$100 million), as well as the tranche 2 loans (available for an initial draw of US$175 million); such remaining availability under tranche 1 and the initial availability under Tranche 2 will be drawn in a single draw once the remaining conditions precedent to such draw are satisfied. Subsequently, and subject to the fulfilment of additional conditions and milestones, additional draws in minimum amounts of US$100 million would be made available to the Company.

Andrés Conesa, CEO of Aeroméxico, commented: «The final approval of the DIP Facility by the Chapter 11 Court is a key milestone in Aeroméxico’s ongoing restructuring process, which will provide us the certainty accessing liquidity to continue meeting our ongoing obligations in an orderly fashion. The future exercise of the additional funding under the DIP Facility will continue supporting our operations during our voluntary restructuring process. We recognize and appreciate the continuing support from our Board of Directors and all stakeholders, particularly from our employees, unions and authorities».

«Aeroméxico will continue pursuing, in an orderly manner, the voluntary financial restructuring process under the Chapter 11 process, while continuing to operate and offer services to its clients and contracting with its suppliers the goods and services required for operations. The Company will continue to use the benefits of the Chapter 11 proceeding to strengthen its financial position and liquidity, protect and preserve operations and implement the necessary adjustments to manage the impact of COVID-19», stated the Company through a press release.

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Pablo Díaz (diazpez)
Director Editorial de Aviacionline.com. 40 años. Argentino. Casado. Profesional de IT por elección, Aeronáutico por vocación. Casi piloto. Casi Spotter. Casi Ingeniero. Viajero ocasional, nerd frecuente.

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