Grupo
Aeroméxico
informed that NY South District Judge Shelley C. Chapman authorized the motion presented on August 13, 2020 by the Mexican airline requesting the interim approval for a DIP financing motion.
Debtor-in-possession financing represents a significant progress on Aeroméxico’s financial restructuring that began last June 30, 2020.
Therefore, Aeroméxico will enter into an agreement with Apollo Global Management to formalize Apollo’s commitment to fund up to USD $1 billion .
The DIP facility approved by the court on an interim basis provides a DIP secured priority multi-tranche facility that consists of a secured Tranche 1 facility of USD $200 million and a secured Tranche 2 facility of USD $800 million.
Recommended:
Andrés Conesa, Aeroméxico’s general director, said that the court’s approval is a significant step in the process of financial restructuring of the Mexican airline as well as recognition from all interested parties in the airline’s operating system and proven strategy.
“The DIP Facility will provide us with liquidity to meet our future obligations in a timely and orderly fashion, and to continue with our operations during and after the voluntary restructuring process ,” he said in a statement.
According to the court’s interim approval of the DIP facility and subject to the fulfillment of customary conditions, up to USD $100 million of the Tranche DIP Loans will be made immediately available.
Recommended:
Upon entry of an order by the court granting final approval of the DIP Facility, and fulfillment of certain other conditions, the undrawn portion of the Tranche 1 and the Tranche 2 DIP Loans will be made available. The final hearing is expected to occur by late September.
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