Grupo Aeroméxico, S.A.B. de C.V. (BMV: AEROMEX) has announced it has filed for up to USD 100 million in DIP financing to maintain liquidity to complete Chapter 11 restructuring process, the company said.
The motion was filed as a follow-up to the financial restructuring process initiated on June 30, 2020.
Subject to the fulfillment, in each case, of certain milestones, covenants and conditions precedent agreed with the DIP Lenders, upon the date of entry of an order by the Court granting interim approval of the DIP Facility and fulfillment of other conditions, up to USD 100 million of the Tranche 1 DIP Loans will be made available; and upon the date of entry of an order by the Bankruptcy Court granting final approval of the DIP Facility and fulfillment of other conditions, the undrawn portion of the Tranche 1 facility will be available in a single draw, and the Tranche 2 DIP Loans will be made available in an initial draw of USD 175 million.
The DIP Facility, the execution of definitive credit and ancillary agreements, and the fulfillment of certain conditions for funding of the separate two tranches, will provide liquidity to meet future obligations in a timely and orderly fashion, and to continue operations during and after the voluntary restructuring process.
The terms of the DIP Facility require that Aeromexico enters into a Shareholder Support Agreement with a majority of its shareholders, representing approximately 75% of its capital stock, including Delta Airlines, under which such supporting shareholders shall vote in favor of a capital increase to effectuate the conversion of the Tranche 2 DIP Facility.
Grupo Aeroméxico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs.