Cleary Gottlieb is representing certain funds managed by affiliates of Apollo Global Management Inc. (Apollo Funds) in the voluntary restructuring of the debt and equity of Grupo Aeroméxico S.A.B. de C.V. (Aeroméxico), and certain of its affiliates, under Chapter 11 bankruptcy protection in the United States.
Upon Aeroméxico’s emergence from Chapter 11, the Apollo Funds will be the largest shareholder of the reorganized company.
Aeroméxico filed its Chapter 11 petition in June 2020. In August 2020, Apollo Funds agreed to provide a $1 billion senior secured superpriority multi-tranche debtor in possession term loan facility (DIP facility), of which approximately $650 million in original principal amount of the tranche 2 loans (plus accrued interest) will be converted into equity in the reorganized Aeroméxico. On Friday, January 28, 2022, Aeroméxico’s Chapter 11 plan of reorganization, which received support from all classes of creditors, was confirmed by the Bankruptcy Court for the U.S. District Court for the Southern District of New York.
Aeroméxico is Mexico’s flag carrier airline, as well as Mexico’s leading airline in terms of market share, fleet size, and network. As Mexico’s only full-service carrier, prior to the COVID-19 pandemic Aeroméxico offered 577 daily passenger flights on average, servicing 43 domestic and 46 international destinations from Mexico.