Aeromexico gets an extension for its Chapter 11 reorganization plan filing

Grupo Aeromexico informed that the U.S. Bankruptcy Court for the Southern District of New York, which is presiding over Aeromexico’s voluntary Chapter 11 financial restructuring process, granted the Company’s request to extend the plan exclusivity periods.

Ads

As of this decision, the exclusivity period for filing a chapter 11 plan now expires on October 8, 2021, subject to a further extension ordered by the Court.

On September 10, 2021, the Company delivered to its DIP (Debtor In Possession) creditors the final valuation materials and the refinancing qualification certificate pursuant to the DIP Credit Agreement. Pursuant to such Agreement the Tranche 2 DIP Lenders were required to notify the Company no later than 10 days after delivery of the Final Valuation Materials (i.e., on or before September 20, 2021) of their election to convert their loans into equity of the reorganized Company at the value set forth in the Final Valuation Materials (the «Election Subscription Notice»).

Apollo, one of the DIP Lenders, filed a reservation of rights in the Court file in which it took the position that the Final Valuation Materials delivered by the Company did not comply with the requirements of the DIP Credit Agreement and, accordingly, delivery of the Final Valuation Materials, in its opinion, has not occurred. As set forth in the reservation of rights, Apollo’s view is that it is not yet obliged to send the Notice of Election Subscription.

The Company maintains its position that the Final Valuation Materials have been delivered as required under the DIP Credit Agreement. This position is supported by the Unsecured Creditors Committee, organized groups of Aeromexico’s creditors and other DIP lenders. Aeromexico intends to file a Plan of Reorganization consistent with the Final Valuation Materials delivered on or about September 30, 2021, but in any event no later than October 8, 2021.

Ads

Aeromexico will continue to carry out, in an orderly manner, its voluntary financial restructuring through Chapter 11, while continuing to operate and provide services to its customers and contracting with its suppliers for goods and services required for operations. The Company will continue to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement the necessary adjustments to mitigate the effects of COVID-19.