Grupo Aeromexico Files For US Chapter 11
Grupo Aeromexico S.A.B. de C.V has announced that it, and certain of its affiliates have filed voluntary Chapter 11 petitions in the United States to implement a financial restructuring while continuing to serve customers.
The company indicated that it intends to use the Chapter 11 process to strengthen its financial position and implement necessary operational changes to address the impact of the ongoing COVID-19 pandemic and create a sustainable platform for the future.
Andrés Conesa, chief executive officer of Aeromexico, said: “Our industry faces unprecedented challenges due to significant declines in demand for air transportation. We are committed to taking the necessary measures so that we can operate effectively in this new landscape and be well prepared for a successful future when the COVID-19 pandemic is behind us.”
Conesa explained: “We expect to utilize the Chapter 11 process to strengthen our financial position, obtain new financing and increase our liquidity, and create a sustainable platform to succeed in an uncertain global economy.”
Aeromexico’s operations will continue
In July, the company said that it expects to double the number of its domestic flights and quadruple the number of international flights as compared to June.
The airline is committed to continuing to safely expand flight service in the coming months, in line with local regulations and customer demand.
Aeromexico also noted that the U.S. Chapter 11 process is designed to allow companies to maintain regular operations and all current tickets, reservations, electronic vouchers and Premier Points will remain valid and available for use by customers according to the company’s existing terms and conditions.
Aeromexico will continue to operate in accordance with existing permits and concessions throughout this process.
The company also said that it does not expect to be any changes to employees’ day-to-day job responsibilities, and employees will continue to be paid and receive benefits in the ordinary course of business.
Aeromexico also intends to continue ordering goods and services from its suppliers and expects to meet its current commercial agreements with partner airlines, including its key and industry leading Joint Cooperation Agreement with Delta Air Lines.
The airline is also in talks to obtain new, preferential financing for the Company, as part of the restructuring within the reorganization procedure (which is known as “debtor-in-possession” or “DIP financing).”
The company said that it is confident that it will finalize formal commitments for DIP financing that, along with the company’s available cash and subject to Court approval, would provide sufficient liquidity for Aeromexico to meet its obligations going forward.
Go to https://vuela.aeromexico.com/reorganization for more.
Access to Court filing and other documents related to this process can be found at https://dm.epiq11.com/Aeromexico- [dm.epiq11.com] .