The United States Bankruptcy Court for the Southern District of New York approved Aeromexico’s restructuring plan on January 28, 2022, Reuters reported.
Apollo Global Management will be the airline’s largest stakeholder, while Delta Air Lines is expected to have 20% stake in Aeromexico once the restructuring plan is implemented, according to report.
“I could not be more pleased to tell you the plan of reorganization is confirmed,” US Bankruptcy Judge Shelley Chapman was quoted as saying.
In December 2021, some of the airline’s creditors opposed Aeromexico’s restructuring plan, claiming it was “marred by conflicts of interest and opacity”. Invictus Global Management, which has continuously objected to the carrier’s reorganization proposal, claimed the plan unfairly divides shares and pays back debt.
“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 public letter.
Aeromexico filed for Chapter 11 bankruptcy protection in the United States in June 2020 as the global pandemic brought air travel to halt.
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”.
