Aeromexico continues union talks, secures extension of DIP facility

By Sarah Lizee

Olympia, Wash., Jan. 8 – Grupo Aeromexico, SAB de CV is still in negotiations with two of its unions, Asociacion Sindical de Sobrecargos de Aviacion de Mexico (ASSA) and Asociacion Sindical de Pilotos Aviadores de Mexico (ASPA), according to a press release issued Friday.

The company said the successful conclusion of these negotiations is necessary for it to meet certain commitments and objectives required by the debtor-in-possession lenders within its financial restructuring process under Chapter 11.

Consequently, Aeromexico requested an extension to the term provided in the credit agreement, which has been granted until Jan. 27, in order to comply with the conditions and obligations under the DIP financing.

The company said it will continue to work with the representatives of the unions in order to meet the necessary conditions to request the next disbursement under the second tranche of the DIP financing.

As previously reported, the company has satisfactorily concluded negotiations with the Sindicato de Trabajadores de la Industria Aeronáutica, Comunicaciones Similares y Conexos de la Republica Mexicana (STIA) and with the Sindicato Nacional de Trabajadores al Servicio de las Líneas Aereas, Transportes, Servicios, Similares y Conexos Independencia (Independencia), as previously reported.

Grupo Aeromexico, a holding company for commercial aviation, is based in Mexico City. The company filed Chapter 11 on June 30, 2020 under case number 20-11563.

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