Aeromexico says its plan is accepted by all voting creditor classes

By Sarah Lizee

Olympia, Wash., Jan. 21 – Grupo Aeromexico, SAB de CV said that its Chapter 11 plan of reorganization has been accepted by all voting creditor classes.

The company said in a Friday press release that the U.S. Bankruptcy Court for the Southern District of New York said it will enter into an order granting the company’s motion to enforce a court order requiring certain parties to vote their claims to accept the plan.

As a result, all eight classes of creditors entitled to vote on the plan, including the unsecured creditors of Aerovias Empresa de Cargo, SA de CV have voted to accept the plan, with about 88% by amount of claims voting in favor.

Previously, seven of the eight classes, totaling about 86% by amount of claims, had voted to accept the plan.

The plan confirmation hearing is scheduled to begin on Jan. 27.

As previously reported, the official committee of unsecured creditors objected to the plan on Tuesday and questioned the voting results, saying they should be “closely scrutinized.”

The group claims most of the actual votes in favor of the plan came from creditors that were already obligated to vote in favor, either because they were invited to the negotiating table and are receiving special benefits or were obligated to vote in favor of a so-called “complying plan” before they had a chance to see the actual plan, or the approved disclosure statement.

The committee also claims the debtors targeted key creditors with calls pressuring them to vote in favor of the plan due to longstanding relationships and hopes of doing future business.

The group also claims the debtors were able to use a “procedural loophole” to value unliquidated claims at $1 for voting purposes, even though the debtors know that the class of general unsecured creditors at debtor Aerolitoral, SA de CV (Aeromexico Connect) would have voted to reject the plan if the debtors counted votes using their own low-end estimates of the value of allowed claims at Aeromexico Connect.

The committee said the few remaining general unsecured creditors that actually voted on the plan were “faced with a Hobson’s choice when presented with a ballot: vote ‘yes’ to support the debtors’ restructuring, which results in an unfairly low recovery for them, or vote ‘no’ and possibly endure the parade of horribles the debtors allege would result if the plan were rejected – including a plan with even lower recoveries for them than the one on file.”

“Most troubling is that, prior to the Jan. 7 voting deadline, most creditors had not had the opportunity to fully understand the damning record that the committee uncovered through discovery and that will be on display at the confirmation hearing,” the committee said.

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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