Mexico City, June 30, 2020 -- Grupo Aeromexico S.A.B. de C.V (“Aeromexico” or the “Company”) (BMV: AEROMEX) announced today that it and certain of its affiliates have filed voluntary Chapter 11 petitions in the United States (“Chapter 11”) to implement a financial restructuring, while continuing to serve customers. The Company intends to use the Chapter 11 process to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement necessary operational changes to address the impact of the ongoing COVID-19 pandemic.
“We expect to utilize the Chapter 11 process to strengthen our financial position, obtain new financing and increase our liquidity, and create a sustainable platform to succeed in an uncertain global economy”, said Andres Conesa, Aeromexico CEO. He added: “Our industry faces unprecedented challenges due to significant declines in demand for air transportation globally, hence we are committed to taking the necessary measures so that we can operate effectively in this new landscape and be well prepared for a successful future, during and when the COVID-19 pandemic is behind us”.
Aeromexico will continue to operate in accordance with existing permits and concessions throughout this process. In July the Company expects to double the number of its domestic flights and quadruple the number of international flights as compared to June. Aeromexico is committed to continuing to safely expand flight service in the coming months, in line with local regulations and customer demand, in full compliance with the highest health standards and protocols.
The Company informs that all tickets, reservations, electronic vouchers and Premier Points will remain valid and available for use by customers according to the Company’s existing terms and conditions. During this process, the Company will continue operating in the ordinary course of business, and will also intends to continue ordering goods and services from its suppliers for its ordinary operation.
Aeromexico is also in talks to obtain new, preferential financing for the Company, as part of the restructuring within the reorganization procedure (which is known as “debtor-in- possession” or “DIP financing”). Aeromexico is confident that it will finalize formal commitments for DIP financing that, along with the Company’s available cash and subject to Court approval, would provide sufficient liquidity for Aeromexico to meet its obligations going forward in a timely and orderly fashion way.