At a preliminary hearing, Aeromexico confirmed that it has settled with the group of creditors that initially opposed the reorganization plan that will enable the company to emerge from Chapter 11.
The closing of the agreements allows it to move closer to the plan’s confirmation hearing, set for January 18, with greater confidence. Banco Santander, which has $70 million in claims, informed today that it was withdrawing its objections, as was a group of minority creditors.
Previously, these non-secured creditors had created a committee, which in a statement said that Aeromexico’s reorganization plan undervalued the company by approximately US$1 billion. The plan includes capital contributions of US$1.5 billion and values the company at US$5.4 billion.
Based on these agreements, Judge Shelley Chapman said that if no additional factors are involved, she will approve Aeromexico’s plan at the January confirmation hearing. The plan must then go to a vote of creditors, which is expected to be approved.
