October 31, 2020

Aeroméxico announces financial restructuring process under US bankruptcy law



Aeroméxico, the main Mexican airline, announced on Tuesday that the company and some of its subsidiaries began a voluntary process of financial restructuring under Chapter 11 of the Bankruptcy Law of the United States in the face of the crisis caused by the COVID-19 pandemic.

In a statement, the company indicated that the financial restructuring will be carried out while it continues to operate normally.

“The company will use the advantages of Chapter 11 to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement the necessary operational adjustments to face the impact of COVID-19,” said the CEO of Aeroméxico, Andrés Conesa, in a statement published by the Mexican Stock Exchange (BMV).

He added that “our industry faces unprecedented challenges derived from a significant reduction in passenger demand globally, so we are committed to adopting the necessary measures to operate continuously and efficiently in this new reality, and thereby be better prepared for a successful future during and after the pandemic. “

The companies explained that their operations will continue in progress and in compliance with their permits and concessions, and announced that by July they will increase their presence in the national market “to almost double the number of flights compared to the previous month.”

In addition, he estimated that it will increase its international operation “to almost four times more” compared to the month of June and said that it is committed to growing its operations safely in the coming months.

He also reported that he is in talks “to obtain new financing, preferential, for the company, as part of the restructuring” within the procedure under Chapter 11, which serves for a company to restructure without going into immediate liquidation and having than resort to firing staff.

According to the United States Securities Market Commission, the company that uses the process can continue its operations and reorganize its structure while negotiating a payment plan with its creditors,

The company reported that tickets, reservations, electronic tickets and premier points remain valid, in accordance with the current terms and conditions.

A few days ago, the airline indicated that it plans to close the month of July having exceeded 6,000 flights and confirmed that as the restrictions that are in force in different countries are removed, more destinations can be restored.

Aeroméxico reiterated that protocols to protect the health of its clients and collaborators are applied to all its flights, which were developed through its health and hygiene management system.

Mexico surpassed this Tuesday the 226,000 confirmed cases and the 27,700 deaths by COVID-19, after reporting 5,432 new infections and 648 deaths in its report in the last 24 hours.

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