Bankruptcy Court Approves Aeroméxico’s Chapter 11 Procedure

Mexican airline Aeroméxico concluded its awaited Chapter 11 Joint Plan of Restructuring Process under a US Bankruptcy Court, as it prepares to refine the last details to fully complete its financial strategy.

“Aeroméxico Group, S.A.B. de C.V. informs that the hearing on the approval of the Restructuring Plan of the Company and its debtor subsidiaries in the voluntary financial restructuring procedure under Chapter 11 of the company has been successfully concluded, and the Bankruptcy Court formally announced that it has confirmed and approved the plan,” reads Aeroméxico’s press release.

The announcement represents the airline’s most important milestone in its restructuring procedure. The focus now shifts to exiting Chapter 11’s restructuring process as quickly as possible for the corporate agreements achieved to be fully effective.

Aeroméxico suffered a major share tumble in Dec. 2021, as its shares fell almost 15 percent following announcements regarding the Joint Plan of Restructuring and a third party filing an offer to acquire shares. The offer was made at MX$1 (US$0.05) for each of the 681.24 million outstanding shares. However, major shareholder Delta Air Lines was not expected to attend the offer, leaving it at 331.48 million shares. The airline was also quick to explain to investors that third party decisions regarding the purchase of its shares was outside of the company’s engagement, as reported by MB.

“Today is a very important day for the Aeroméxico Family. I want to thank all my colleagues for their hard work and dedication; I am very proud to be part of a great team of world-class airline industry professionals. I want to thank our employees and the Board of Directors for their invaluable support, as well as our restructuring advisors who did an excellent job in helping us lead our beloved airline in these turbulent times. I want to express my sincere gratitude to Judge Chapman and her team, who have led this process in an exemplary manner. Finally, I want to thank all the stakeholders and the new group of investors for trusting Aeroméxico and for giving us wings to fly even higher through the skies of Mexico and the world,” said Andrés Conesa, General Director, Aeroméxico.