Apollo in $1 Billion Loan Facility to Aeroméxico

August 13, 2020

Cleary Gottlieb is representing Apollo Management Holdings L.P. (Apollo) in a $1 billion senior secured superpriority multi-tranche debtor in possession term loan facility (DIP facility) provided by one or more funds managed by affiliates of Apollo Global Management Inc. (APO) to Grupo Aeroméxico S.A.B. de C.V. (Aeroméxico) in the voluntary reorganization and restructuring of Aeroméxico’s debt under Chapter 11 protection in the United States.

The proposed DIP facility consists of a senior secured Tranche 1 facility in an aggregate principal amount of $200 million and a senior secured Tranche 2 facility in an aggregate principal amount of $800 million, which, at the DIP facility lenders’ election, may be converted at maturity into Aeroméxico equity.

Aeroméxico’s first-day motions in the Chapter 11 proceeding were granted at a July 1, 2020, first-day hearing wherein debtors anticipated filing a motion in time to allow for approval of debtor in possession financing prior to the interim hearing. Aeroméxico filed the motion to approve the DIP facility on August 13, 2020, and the Bankruptcy Court is expected to rule on the DIP facility motion at the interim hearing scheduled for August 19, 2020.

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.