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Group Aeromexico successfully concludes its financial restructuring process and emerges from the Chapter 11.
Aeromexico Group, S.A.B. of C.V.. announced that it has successfully concluded its financial restructuring process and has emerged from its proceeding under Chapter 11 after confirmation by the Court of its Restructuring Plan without objections and having fulfilled certain conditions.
Aeroméxico leaves the Chapter 11
The equity value of the restructured Company (“Plan Equity Value”) is approximately $2,560 million dollars and among its main shareholders are funds managed by Apollo Global Management, Delta Air Lines, as well as the existing and new Mexican investors that form the voting control group. The Baupost Group, Silver Point Capital, Oaktree Capital Management and other funds that were part of the ad-hoc group of creditors are also shareholders. The group of investors has contributed approximately $720 million dollars in new capital. This is in addition to other amounts related to commissions accrued under the Secured Preferred Financing. (DIP Facility) and contributions to capital stock payable in new shares in accordance with the provisions of the Restructuring Plan.
further, Key investors are funding new debt for the Company's exit for approximately $762.5 million dollars through new notes issued in the USA denominated in dollars, totaling approximately $1,500 million dollars in new capital, demonstrating recognition of the long-term value that the Company can create in its service to customers as the flag carrier of Mexico.
A new Board of Directors was formed with a majority of Mexican citizens and independent members, in full compliance with the laws and regulations of our country regarding foreign investment, along with the continued participation of the existing Mexican controlling investors, the President of the Council, Javier Arrigunaga and the CEO, Andres Conesa.
“At Aeroméxico we are ready to fly with a new air. Today is a very exciting day for Aeroméxico and we are ready to reach new heights as we emerge from the Chapter 11. We are ready to start a new chapter in the history of our Company, supported by a strong financial base, a solid capital structure and investors with full confidence in our future.”, Mr said. With that.
Throughout the restructuring process, Aeromexico has worked to expand its operations sustainably, opening 6 new routes, restarting service in more than 30, and increasing its total offer of seats in more than 320% compared to june 2020. Currently, the company flies 84 national and international routes, connecting the main cities of Mexico such as Guadalajara and Monterrey, with the European market through Madrid. On 2022, Aeroméxico will continue this momentum by restarting service to London.
As Aeroméxico heads into the future with a strengthened balance sheet, the company fleet will play a fundamental role in its continuous transformation. From 2021, Aeromexico has received 31 planes and are expected to arrive 22 more in the rest of the year. At the end of the year, The Company plans to have a fleet of 147 aircraft with an average age of seven years, which makes it the most robust and efficient fleet in the Mexican market, offering greater comfort to passengers, lower operating costs and friendlier to the environment.
During the next 5 years, Aeromexico will invest 5 $1 billion in fleet and other key actions to consolidate the experience of its customers and collaborators, which will be more sustainable, attached to its environmental strategy, Sustainability and Governance (ESG).
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