Chapter 11 Court Approves Interim DIP Financing

19/08/2020 20:58

MEXICO CITY, Aug. 19, 2020 /PRNewswire/ -- Grupo Aeroméxico, S.A.B. de C.V. ("Aeromexico" or the "Company") (BMV: AEROMEX) reports that the Company's DIP Financing Motion, filed on August 13, 2020, was approved today by Judge Shelley C. Chapman of the United States Bankruptcy Court for the Southern District of New York (the "Chapter 11 Court"), a significant step forward in the Company's financial restructuring process initiated on June 30, 2020.

The Chapter 11 Court authorized the Company to enter into an agreement with Apollo Global Management Inc. ("Apollo") that formalized Apollo's commitment to fund up to US$1 billion in connection with the DIP financing facility. The DIP Facility approved by the Chapter 11 Court on an interim basis provides for a US$1 billion secured superpriority multi-tranche debtor-in-possession term loan facility (the "DIP Facility"), contemplates (i) a senior secured Tranche 1 facility of US$200 million, and (ii) a senior secured Tranche 2 facility of US$800 million.

Andrés Conesa, CEO of Grupo Aeromexico, commented: "The Court approval obtained today was a critical milestone in the ongoing restructuring process for Aeromexico, and a recognition from all interested parties of Aeromexico's solid operating business and proven strategy. The DIP Facility will provide us with liquidity to meet our future obligations in a timely and orderly fashion, and to continue with our operations during and after the voluntary restructuring process. We recognize and appreciate the continuing support from all stakeholders."

Based on the Chapter 11 Court's interim approval of the DIP Facility, and subject to the fulfillment of customary conditions, up to US$100 million of the Tranche DIP Loans will be made immediately available. Upon entry of an order by the Chapter 11 Court granting final approval of the DIP Facility, and fulfillment of certain other conditions, the undrawn portion of the Tranche 1 and the Tranche 2 DIP Loans will be made available. It is anticipated that a final hearing before the Chapter 11 Court will occur by the end of September,

Moreover, the Court also approved the Company's critical vendors and airline contracts motions (the "Motions") on a final basis, and approved the Company's settlement (the "Settlement") with certain parties regarding the Series AERMXCB17 and AERMXCB 19 CEBURES Senior Trust Bonds. The Court's approval of the Motions and Settlement was a significant step towards ensuring the Company's continued ability to seamlessly operate.

We will continue pursuing, in an orderly manner, the voluntary process of financial restructuring under the Chapter 11 process, while we continue operating and offering services to our customers and contracting from our suppliers the goods and services required for operations. We will continue to use the advantages of the Chapter 11 proceeding to strengthen our financial position and liquidity, protect and preserve our operations and assets, and implement the necessary adjustments to face the impact of COVID-19.

This press release contains certain forward-looking statements that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. We use words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "should" and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this release. The Company is under no obligation and expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Grupo Aeromexico
Grupo Aeroméxico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, Mexico's global airline, has its main operations center in Terminal 2 of the Mexico City International Airport. Its destination network has reach in Mexico, the United States, Canada, Central America, South America, Asia and Europe. The Group's current operating fleet includes Boeing 787 and 737 aircraft, as well as the latest generation Embraer 190. Aeromexico is a founding partner of SkyTeam, an alliance that celebrates 20 years and offers connectivity in more than 170 countries, through the 19 partner airlines. Aeromexico created and implemented a Health and Hygiene Management System (SGSH) to protect its clients and collaborators at all stages of its operation.

www.aeromexico.com
www.skyteam.com

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