Chapter 11 The Court approves the interim financing of the DIP
MEXICO, August 19, 2020 / PRNewswire / – Grupo Aeroméxico, SAB de CV (“Aeromexico” or the “Company”) (BMV: AEROMEX) reports that the Company’s DIP funding request, filed on Aug 13, 2020, was approved today by the judge Shelley C. Chapman of the United States Bankruptcy Court for the Southern District of new York (the “Chapter 11 Court”), an important step in the process of financial restructuring of the Company launched on June 30, 2020.
The Chapter 11 court authorized the Company to enter into an agreement with Apollo Global Management Inc. (“Apollo”) which formalized Apollo’s commitment to fund up to $ 1 billion under the DIP financing facility. The interim court-approved Chapter 11 DIP facility provides for a US $ 1 billion secured multi-tranche debtor-operator term loan facility (the “DIP Facility”), contemplates (i) a prime facility. guaranteed tier 1 rank of $ 200 million, and (ii) a senior secure installation of unit 2 of $ 800 million.
Andrés Conesa, CEO of Grupo Aeromexico, said: “The court approval obtained today was a critical step in Aeromexico’s ongoing restructuring process, and recognition by all interested parties of Aeromexico’s strong operating activity and its proven strategy. The DIP facility will provide us with liquidity to meet our future obligations in a timely and orderly manner, and to continue to operate during and after the voluntary restructuring process. We recognize and appreciate the continued support of all stakeholders. ”
Based on the provisional approval by the Court of Chapter 11 of the DIP facility, and subject to customary conditions, up to $ 100 million DIP Tranche Loans will be immediately available. Upon entry of a Chapter 11 court order granting final approval of the DIP facility and the fulfillment of certain other conditions, the unused portion of the Tranche 1 and Tranche 2 DIP loans will be made available. It is expected that a final Chapter 11 Court hearing will take place by the end of September,
In addition, the Court also approved the Company’s critical petitions regarding suppliers and airline contracts (the “Motions”) on a final basis, and approved the Company’s settlement (the “Settlement” with certain parties). regarding Senior Trust Bonds Series AERMXCB17 and AERMXCB 19 CEBURES The approval by the Court of Petitions and Settlement has been an important step in ensuring the Company’s continued ability to operate in a transparent manner.
We will continue to pursue the voluntary process of financial restructuring under the Chapter 11 process in an orderly fashion, while continuing to operate and provide services to our customers and to subcontract goods and services to our suppliers. services necessary for our operations. We will continue to use the benefits of the Chapter 11 process to strengthen our financial position and liquidity, protect and preserve our operations and assets, and implement the necessary adjustments to deal with the impact of COVID-19.
This press release contains certain forward-looking statements which reflect the current opinions and / or expectations of the Company and its management with respect to its performance, activities and future events. We use words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “target”, “estimate”, “project”, “predict”, “anticipate” “,” Guideline “,” should “and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this press release. The Company has no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About Grupo Aeromexico
Grupo Aeroméxico, SAB de CV is a holding company whose subsidiaries are active in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexique, from Mexico global airline, has its main operations center in Terminal 2 of the Mexico International airport. Its destination network has a reach in Mexico, United States, Canada, central America, South America, Asia and Europe. The Group’s current fleet includes Boeing 787 and 737, as well as the latest generation Embraer 190. Aeromexico is a founding partner of SkyTeam, an alliance which is celebrating its 20th anniversary and offers connectivity in more than 170 countries, via the 19 partner airlines. Aeromexico has created and implemented a Health and Hygiene Management System (SGSH) to protect its customers and employees at all stages of its operation.
SOURCE Grupo Aeromexico, SAB de CV