Grupo Aeroméxico, S.A.B. de C.V. ("Aeroméxico" or the "Company") (BMV: AEROMEX) informs that the United States Bankruptcy Court for the Southern District of New York, presiding over Aeroméxico's Chapter 11 voluntary financial restructuring process, granted the Company's request for extensions of the plan exclusivity periods. The exclusive period for filing a chapter 11 plan now expires on October 8, 2021, subject to further extension as ordered by the Court.
As reported earlier, 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, 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 September 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 "Election Subscription Notice").
Apollo, one of the DIP Lenders, filed a reservation of rights on the Court's docket in which it took the position that the Final Valuation Materials delivered by the Company did not comply with the requirements of the DIP Credit Agreement, and, accordingly, the delivery of Final Valuation Materials, in their opinion, has not occurred. As set forth in the reservation of rights, Apollo's view is that it is not yet obligated to send the Election Subscription Notice.
The Company maintains its position that Final Valuation Materials have been delivered as required under the DIP Credit Agreement. That position is 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 September 30, 2021 but in any event no later than October 8, 2021.
Aeroméxico will continue pursuing, in an orderly manner, its voluntary financial restructuring through Chapter 11, while continuing to operate and offer services to its customers and contracting from 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 necessary adjustments to mitigate the effects of COVID-19.