Financially Distressed Aeromexico Gets $50 Million Lifeline

Mexican airline Aeromexico, which is in the process of analyzing its options for restructuring its short- and medium-term financial commitments, was thrown a $50 million financial lifeline on Monday by investment holding company Aimia Inc, Reuters reported. Aeromexico’s shares tanked earlier in June after a newspaper column said it was considering filing for bankruptcy, though the airline later clarified it had not decided whether to seek Chapter 11 protections in the United States. Aeromexico and Aimia said in separate statements they inked a definitive agreement to amend a shareholders agreement between them and a commercial agreement between Aeromexico and PLM Premier, the operator of the Club Premier loyalty program. PLM made an initial $50 million loan to Aeromexico under an existing intercompany loan facility after the signing of a letter of intent between Aimia and Aeromexico announced on May 12. Read more