Aeroméxico Receives Court Approval of Extension of Exclusive Period to File Its Plan of Reorganization

The U.S. Bankruptcy Court for the Southern District of New York, which is presiding over Aeroméxico's chapter 11 voluntary financial restructuring process, granted the company's request for extensions of the plan exclusivity periods, according to a company press release. The exclusive period for filing a chapter 11 plan now expires on Oct. 8, 2021, subject to further extension as ordered by the court. On Sept. 10, 2021, the company delivered to its DIP Lenders the Final Valuation Materials and the Refinancing Qualification Certificate in accordance with the DIP Credit Agreement. Under the DIP Credit Agreement, and as agreed upon in mediation, the Tranche 2 DIP lenders were required to provide notice to the company no later than 10 days following the delivery of Final Valuation Materials (i.e., on or before Sept. 20, 2021) of their election whether to convert their loans into equity of the reorganized company at the value set forth in the Final Valuation Materials. The company maintains its position that Final Valuation Materials have been delivered as required under the DIP Credit Agreement, a position supported by the unsecured creditors’ committee, organized groups of Aeroméxico's creditors and other DIP lenders. Aeroméxico intends to file a plan of reorganization consistent with the delivered Final Valuation Materials on or around Sept. 30, 2021, but in any event no later than Oct. 8, 2021. Read more.

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