AeroMexico has emerged from its Chapter 11 bankruptcy reorganization following a 21-month process. The reorganized company is now valued at $2.56 billion. Delta now owns 20% of the restructured company.

Grupo Aeroméxico issued this legal announcement:

Grupo Aeroméxico, S.A.B. de C.V., informs that, as disclosed in our prior relevant event of this date, (i) the resolutions adopted by the Shareholders Meetings of the Company held on January 14 and February 14, 2022 are now effective, (ii) Aeroméxico has consummated its Plan of Reorganization (and ancillary documents thereto) (jointly; and (iii) it has successfully concluded its financial restructuring process and emerged from its Chapter 11.

The delivery of the new listed and consolidated shares (reflecting the effects of the consolidation (reverse split) of shares), representing the new capital stock of the Company as of today, will be delivered, directly through the S.D Indeval, Institución para el Depósito de Valores, S.A. de C.V., or through the custodian broker S3 Caceis, in favor of the brokers and/or custodians of shareholders owning shares representing the new capital stock of Aeroméxico.

As set forth in the Plan of Reorganization, the equity value of the reorganized Company (“Plan Equity Value“) is approximately US$2,564′000,000.00 dollars, and the new outstanding listed shares are 136,423,959 (excluding treasury shares pending to be subscribed in the amount of 13,642,396). The authorized total amount of shares issued by the Company are 150,066,355 shares.

The theoretical value of the new shares is approximately of $389.0187 pesos per share (Plan value of the Company (US$2,564′000,000.00 dollars) divided by new subscribed shares (136,423,959), which results in approximately US$18.79 dollars per share converted at the official exchange rate ($20.7035 pesos per one dollar of the United States of America) published today by the Central Bank of Mexico in the Official Gazette of the Federation (Diario Oficial de la Federación)), which should start being reflected by the market.

The largest shareholders of the reorganized Company include funds managed by Apollo Global Management, Delta Air Lines, as well as existing and new Mexican investors that formed the group with voting control. The Baupost Group, Silver Point Capital, Oaktree Capital Management and other funds that were part of the ad hoc groups of creditors are also shareholders after investing approximately US$720 million in new capital. This is in addition to other amounts related to fees accrued on the “DIP Facility” and on the new equity contributions payable in new stock as provided in the Plan of Reorganization.

Additionally, key stakeholders are funding new exit debt of approximately US$762.5 million in the form of new U.S. dollar denominated Notes.  As a result of the Plan and related transactions, the Company gained access to approximately US$1,500′000,000.00 dollars in new capital.

Pursuant to the resolution of the Shareholders Meetings, a new Board of Directors has been formed that is comprised of a majority of Mexican nationals and independent members in full compliance with Mexican foreign investment law and regulations, along with the continued participation of existing Mexican controlling investors, the Chairman of the Board, Javier Arrigunaga, and the CEO, Andres Conesa.

“Today is an incredibly exciting day for Aeroméxico and we are ready to soar to new heights as we emerge from Chapter 11. We look forward to starting a new chapter in our Company’s history, backed by a sound financial base, solid capital structure, and investors who have full confidence in our future. Thanks to the dedication of the entire talented Aeroméxico family, as well as the support, trust, and empathy of our customers, unions, authorities, suppliers, and business partners, we have successfully completed this process. As we move forward, we will not only continue to streamline our Company to become even more sustainable, resilient, and competitive, but we will also significantly expand our network and fleet – all while offering excellent service and maintaining our position as Mexico’s flagship airline“, said Mr. Conesa.

Throughout the restructuring process, Aeroméxico has worked to expand its operations sustainably, opening six new routes, restarting service on more than 30, and increasing its total seat offering by more than 320% compared to June 2020 figures. The Company currently flies 84 national and international routes, connecting bustling cities in Mexico, such as Guadalajara and Monterrey, to the European market through Madrid. In 2022, Aeroméxico plans to continue building on this momentum, including the restart of services to London.

Since 2021, Aeroméxico has received 31 airplanes and expects to receive 22 more over the course of 2022. At the end of this year, the Company expects to have a fleet of 145 aircraft with an average age of seven years.

Aeroméxico is planning to invest approximately US$5′000,000,000.00 dollars over the next five years in fleet and customer experience improvements allowing the Company to maintain its state-of-the-art service.

Aeroméxico will continue serving customers, honoring milestone program, restarting service on certain international routes and opening new routes, while continuing to comply with strict protocols to protect the health and safety of employees and customers. Aeroméxico continues operating in full observance of all applicable Mexican laws and requirements under public concessions granted by the Federal Government, controlled by Mexican investors.