Grupo Aeroméxico has successfully concluded its financial restructuring and has emerged from Chapter 11. The reorganised Aeromexico’s equity value is now US$2.564bn, with 136,423,959 new outstanding listed shares valued theoretically at $389.0187 pesos per share (US$18.79).
Aeromexico’s largest shareholders 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 detailed in the Plan of Reorganization.
Key stakeholders are funding new exit debt of approximately US$762.5 million in the form of new US dollar denominated Notes. As a result, Aeromexico has gained access to approximately US$1.5bn in new capital.
A new Board of Directors has been formed, comprised of a majority of Mexican nationals and independent members, 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,” said Conesa. “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…. 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.”
Throughout the restructuring process, Aeroméxico stated that it 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 airline currently flies 84 national and international routes, connecting cities in Mexico, such as Guadalajara and Monterrey, to the European market through Madrid. In 2022, Aeroméxico states that it plans to continue building on this momentum, including the restart of services to London.
Since 2021, Aeroméxico has received 31 aircraft and expects to receive 22 more over the course of 2022. At the end of this year, it expects to have a fleet of 145 aircraft with an average age of seven years.
Aeroméxico is planning to invest approximately US$5bn over the next five years in fleet and customer experience improvements.
Meanwhile, International Consolidated Airlines Group (IAG) has agreed to loan Globalia €100 million over seven-years on an unsecured basis, with the option to convert the loan into an up to 20% equity stake in Air Europa.
"We remain convinced about the strategic importance of this deal to the development and competitiveness of Madrid's hub,” says Luis Gallego, IAG's chief executive. “Since we started negotiations, the world has changed. This agreement will give us time to evaluate with exclusivity alternative structures that may be of interest to both companies and offer significant benefits for their customers, employees and shareholders."
The agreement is conditional on Globalia receiving approval from syndicated banks that provided the loan agreement partially guaranteed by the Instituto de Crédito Oficial (ICO) and by Sociedad Estatal de Participaciones Industriales (SEPI).
The agreement also provides for a period of exclusivity of one year while discussions take place, which is accompanied by a right to match any third party offer for the airline in the next three years, together with a right to exit alongside Globalia should it sell Air Europa at any time in the future.