Aeromexico gets extension of exclusive filing, solicitation periods

By Sarah Lizee

Olympia, Wash., Sept. 20 – Grupo Aeromexico, SAB de CV secured an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the court extended the plan filing period through Oct. 8 from Sept. 8 and the solicitation period through Dec. 8 from Nov. 8.

Under the company’s debtor-in-possession credit agreement, delivery of final valuation materials is a necessary prerequisite to filing a plan of reorganization, and will determine key proposed Chapter 11 plan terms – most notably, whether the tranche 2 DIP lenders will convert their loans into equity.

The company said it had delayed sending final valuation materials as long as possible to facilitate discussions and to afford parties as much time as possible to resolve any issues in their respective proposals.

Aeromexico is in default under the DIP credit agreement because it was supposed to deliver the final valuation materials by Aug. 23.

“But it was more important to the debtors that they get the valuation right than timely because they appreciate that sending the final valuation materials, and subsequently filing the Chapter 11 plan, is a critical milestone for these Chapter 11 cases and it is of paramount importance to make every effort to obtain stakeholder consensus before doing so,” the company said in its motion.

The company later said it delivered the final valuation materials on Sept. 10.

“The debtors believe that it would be premature to file a Chapter 11 plan prior to delivery of the final valuation materials and the delivery of the tranche 2 lenders of their election subscription notice,” the company said in its exclusivity motion.

Grupo Aeromexico, a holding company for commercial aviation, is based in Mexico City. The company filed Chapter 11 on June 30, 2020 in the U.S. Bankruptcy Court for the Southern District of New York under case number 20-11563.

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