UPDATE 1-Delta will receive 20% new shares under Aeroméxico restructuring plan

(Update with cut document citations, add context)

NEW YORK, Nov 22 (Reuters) – US airline Delta Airlines will receive 20% of new Aeroméxico shares as part of the Mexican firm’s financial restructuring plan, a document from a US court handling the case showed.

Grupo Aeroméxico, which operates the largest airline in the country, was hit hard by a collapse in demand due to the coronavirus pandemic, which is why it took part in a restructuring process in mid-2020 https://www.reuters.com / article / aerolineas-mexico-aeromexico-idLTAKBN2413TZ under Chapter 11 of the US bankruptcy law.

“As a result … Delta will receive 20.0% of all new shares issued under the Chapter 11 Plan,” says a US Southern District court document released Friday.

According to the agreement, for Delta to have this participation, it must make an investment of 100 million dollars – in addition to the 185 million dollars it disbursed for the loan from Apollo Global Management – which will be converted into shares.

This year, Delta acquired $ 185 million from financing that Grupo Aeroméxico received from the Apollo Global Management fund. As part of the operation, the Mexican airline obtained a loan for 1,000 million dollars of resources managed by Apollo.

With a 51.3% shareholding according to data from Refinitiv Eikon, Delta is the main shareholder of Grupo Aeroméxico. (Report by Jonathan Stempel; Written by Raúl Cortés Fernández and Diego Oré in Mexico City)


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