Interjet Announces Plans to Resume Operations Despite Bankruptcy

After a Second District Judge officially declared Interjet bankrupt and ordered it to sell assets to pay creditors, a representative for the airline said it would resume operations in Mexico. 

In a video published on social networks, Alejandro del Valle de la Vega, Chairman of the Board of Directors, Interjet, explained that the company had reached agreements with workers, the Treasury, other authorities, its creditors and investment funds. Thus, del Valle says that Interjet will resume operations in Mexico despite the bankruptcy proceedings. The company had planned to request an extension from the Judicial Power; but it was not filed on time due to “an error,” says del Valle. He adds that the company is considering restructuring and relaunching the company to restart operations, starting with paying 100% of the debts owed to its workers and ensuring their rehiring with one month’s salary before their reincorporation.

Del Valle explained that Interjet’s restructuring process is “about to culminate” under the management of investment bank Morgan Stanley. “We are days away from finishing the restructuring, thanks to the fact that we hired one of the best companies in the world, Morgan Stanley.. we are ready, with dates very close, in May with the workers, June, the taxes if the tax authority authorizes the signing of the agreement and July, to leave the insolvency proceeding and see Interjet in the skies again by the end of this year,” says del Valle.

Del Valle adds that the airline had already made a formal proposal to tax attorney Félix Arturo Medina, offering two alternatives to fully pay the owed taxes. He also said that Interjet is working with its investors to show that it is on the right track. He also explained that there is a legal tool within the insolvency proceedings to restructure the company by employing a debt reduction, which requires convincing 50% plus one of the creditors, a step that the company has already achieved.

Interjet's insolvency proceeding was not requested by the airline but by the plaintiff, Aguilar Amilpa Abogados and the airline was considered insolvent on Aug. 29, 2022. Interjet, which stopped flying in December 2020, allegedly owes MX$40 billion (US$2.2 billion) to lessors, former employees, tax authorities, service providers and landlords.