Aeromexico receives approval of extension to present its reorganization plan
The exclusive period to file a Chapter 11 plan now expires on October 8, 2021
Grupo Aeroméxico, SAB de CV informs that the Bankruptcy Court of the United States for the Southern District of New York, which presides over the process of voluntary financial restructuring of Chapter 11 of Aeroméxico, granted the request of the Company for extensions of the periods exclusivity of the plan. The exclusive period to file a Chapter 11 plan now expires on October 8, 2021, subject to further extension as ordered by the Court.
As previously reported, on September 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 in mediation, Tranche 2 DIP Lenders were required to notify the Company no later than 10 days after delivery of the Final Appraisal Materials (i.e. September 20, 2021 or earlier) of your election to convert your loans into equity of the reorganized Company at the value set forth in the Final Valuation Materials (the "Election Subscription Notice").
Apollo, one of the DIP Lenders, filed a reservation of rights in the Court's file in which it assumed that the Final Valuation Materials delivered by the Company did not meet the requirements of the DIP Credit Agreement and, consequently, the delivery of Final Assessment Materials, in your opinion, has not occurred. As set forth in the reservation of rights, Apollo's opinion is that it is not yet obligated to submit the Election Subscription Notice.
The Company maintains its position that the Final Valuation Materials have been delivered as required by the DIP Credit Agreement. This position is supported by the Unsecured Creditors Committee, organized groups of Aeroméxico creditors and other DIP lenders. Aeromexico intends to submit a Reorganization Plan consistent with the Final Assessment Materials delivered on or around September 30, 2021, but in any event no later than October 8, 2021.
Aeroméxico will continue to carry out, in an orderly manner, its voluntary financial restructuring through Chapter 11, while continuing to operate and offer services to its clients and to contract with its suppliers the goods and services required for operations. The Company will continue to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement the necessary adjustments to mitigate the effects of COVID-19.