Aeromexico creditor objects to proposed restructuring plan

Alejandro Gonzalez M/

Aeromexico creditor Invictus Global Management has formally objected to the airline’s proposed restructuring plan to emerge from Chapter 11 bankruptcy proceedings. 

In a public letter published on December 20, 2021, Invictus Global Management said that Aeromexico’s proposed restructuring is unjust because it unfairly divides shares and pays back debt. The letter also claims that the airline’s two largest stakeholders, Delta Air Lines and Apollo Global Management, need to address conflicts of interest that undermine Aeromexico’s restructuring.  

“It is clear that daylight needs to shine on the actions and decisions that could position you to make hundreds of millions of dollars at the expense of other stakeholders, including the many who stand to be economically crushed under the plan preferred by Delta and Apollo,” Cindy Chen Delano, Co-Founder and Partner at Invictus Global Management, wrote in a letter.  

In November 2020, Delta obtained the option to purchase $185 million (plus certain interest and fees) of Apollo’s Tranche 2 debtor-in-possession (DIP) obligations, more than seven months prior to public disclosure, a letter signed by three smaller Aeromexico’s creditors and Aeromexico financial report for Q3 reveal.  

Therefore, if the restructuring plan is approved, Delta Air Lines’ stake in Aeromexico would be diluted to 20% while the airline’s creditor Apollo would hold 22%.  

On December 9, 2021, other airline’s creditors, including Corvid Peak Capital Management and Hain Capital Group, also wrote a public letter stating “that this bankruptcy process is marred by conflicts of interest and opacity that is not in the best interest of the creditors and will consequently devolve into protracted litigation”. 

Aeromexico filed for Chapter 11 bankruptcy protection in the United States in June 2020 as the global pandemic brought air travel to halt. In October 2021, the company filed a $5.4 billion restructuring plan. 

Then, in December 2021, the company filed a revised version of its reorganization plan, which included plans to designate its creditors “exceptional recoveries and retain substantial equity in the reorganized company”.   


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