Interjet enters insolvency proceedings and conciliation phase begins

The Second District Court for Commercial Bankruptcy in Mexico City declared Interjet in insolvency proceedings. Resolution came out a year and a half after unions representing the airline’s workers filed for insolvency. The company, which inaugurated its services in 2005, ceased operations in December 2020. Its employees have been on strike since January 2021. It is also in conflict with its suppliers and the Mexican government.

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According to the ruling issued by Judge Saúl Martínez Lira, the conciliation stage will be open for 185 calendar days after the resolution is published in the Official Journal of the Federation. The resolution requests the Mexican Ministry of Infrastructure, Communications and Transport to propose a conciliator within five days. The appointed person must notify the creditors of his appointment and indicate an address for the fulfilment of his obligations within a maximum of three days.

Differences between the positions of the company and the union

Despite the fact that a third party -a supplier- promoted the insolvency proceedings, Interjet said in an official statement that the process will be carried out «with the aim of achieving the conservation and start of operations of the company through the agreement signed with its recognised creditors».

The company said it will seek to use the benefits of the commercial process to strengthen its financial position, as well as to protect and preserve its assets. In addition, they will try to «put the company’s liabilities in order, providing security to suppliers and workers» from a «solid base» that will allow them to recover the business and restart operations. Interjet’s total debt currently stands at forty billion Mexican pesos.

In addition, the company also has a debt of 250 million dollars with the Mexican Tax Administration Service. According to Carlos del Valle, the airline’s deputy general director, an agreement has already been reached to settle the debt in instalments.

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The statement also said that the company is in talks so that, once the conciliator is appointed, «the contracting of indispensable credits for the company will be authorised». Finally, they assured they are «committed to adopting the necessary measures to operate on a continuous basis as soon as the momentum of the airline’s relaunch is consolidated».

Despite the approval of the bankruptcy petition, the Section 15 union, which represents around five thousand employees of the company, considers the return of operations is «impossible». The organisation’s goal is to auction off the company’s assets to pay wages and benefits owed.

See also: Interjet will denounce its former directors