Aeromexico takes a step closer to generating an exit from its reorganization process.
Grupo Aeromexico expects to raise a total of US$1.3 billion in order to emerge from U.S. Chapter 11 bankruptcy protection, according to a motion and notice filed with the Bankruptcy Court for the Southern District of New York.
Consequently, investors committed to the recovery, excluding strategic partner Delta Air Lines and Mexican investors, will fund $600 million in new equity (representing 26.9% of all new shares issued), as well as $762.5 million in senior secured notes.
As reported by our media partner Aeroin, this is under an agreement on the terms of an equity commitment letter and debt financing commitment letter entered into between the parties, consisting of Grupo Aeromexico, its main U.S. creditor Apollo Global Management Inc, Delta Air Lines, senior shareholder groups, the unsecured creditors and the Mexican investors.
Further in the proposal, Grupo Aeromexico explained that the revised proposals provided sufficient funds for a successful exit from Chapter 11 and also resolved other important complex issues with broad stakeholder support, which would permit the debtors to continue moving toward a simpler and quicker confirmation of the restructuring plan.
«Quite simply, this is the only viable path ahead for the debtors», the Mexican company said.
