Aeromexico creditor says Delta gets ‘unprecedented treatment’ under plan

By Sarah Lizee

Olympia, Wash., Dec. 20 – Grupo Aeromexico, SAB de CV’s Chapter 11 plan is facing pushback from Invictus Global Management, LLC, which is a large general unsecured creditor in Aeromexico’s bankruptcy case, and a shareholder of Delta Air Lines Inc., according to a press release issued Monday morning.

Invictus said in a public letter that Delta is trying to “ram through a restructuring plan that is underpinned by an opaque economic arrangement with Apollo Global Management, Inc. and seemingly egregious financial terms that defy decades of bankruptcy precedent.”

Invictus added that it plans to object to the plan, which allows Delta to obtain “unprecedented treatment” and join the Apollo debtor-in-possession financing following “months of non-existent disclosure” about the arrangement.

“Daylight needs to shine on the actions and decisions that could position you to make hundreds of millions of dollars at the expense of other stakeholders, including the many who stand to be economically crushed under the plan preferred by Delta and Apollo,” Invictus said in the public letter to Delta directors.

Aeromexico’s plan confirmation hearing is currently scheduled for Jan. 18.

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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