Aeromexico’s restructuring plan was authorized by the United States Bankruptcy Court for the Southern District of New York on January 28, 2022, according to Reuters.
According to the article, Apollo Global Management will be the airline’s largest shareholder, while Delta Air Lines will own a 20% stake in Aeromexico if the reorganization plan is finalized.
“I could not be more pleased to tell you the plan of reorganization is confirmed,” US Bankruptcy Judge Shelley Chapman was quoted as saying.
Some of Aeromexico’s creditors objected to the airline’s restructuring plan in December 2021, alleging it was “marred by conflicts of interest and opacity.”
Invictus Global Management, which has always opposed the carrier’s reorganization plan, claims it unfairly divides shares and repays the debt.
“It is clear that daylight needs to shine on the actions and decisions that could position you to make hundreds of millions of dollars at the expense of other stakeholders, including the many who stand to be economically crushed under the plan preferred by Delta and Apollo,” Cindy Chen Delano, Co-Founder, and Partner at Invictus Global Management, wrote in a public letter.
As the global epidemic halted air travel, Aeromexico filed for Chapter 11 bankruptcy protection in the United States in June 2020.
The company filed a revised reorganization plan in December 2021, which contained intentions to give its creditors “extraordinary recoveries and considerable equity in the restructured company.”
