The finance chief of Grupo Aeromexico SAB, Mexico’s largest airline by market value, says the company will weather a pandemic that dried up passenger demand and drove the firm’s bonds to distressed levels, even without the safety net of a potential government aid package, Bloomberg News reported. Aeromexico bonds due in 2025 now fetch just 31 cents on the dollar after the coronavirus pandemic and subsequent travel restrictions all but erased global demand for passenger flights. As Mexican President Andres Manuel Lopez Obrador insists he won’t bail out large companies, the $400 million of notes, sold just as the virus erupted in January, are Latin America’s worst performing after bonds from Colombian airline Avianca Holdings SA -- which just emerged from its own restructuring. Nevertheless, Chief Financial Officer Ricardo Sanchez Baker says he remains confident Aeromexico can keep current on its obligations. Read more
Location