Chapter 11 Court approves DIP Financing Facility

Chapter 11 Court approves, on a final basis, Grupo Aeromexico's formalization of credit agreement for up to US$1,000 million of DIP financing.

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Grupo Aeroméxico, S.A.B. de C.V.

Oct 09, 2020, 16:36 ET

MEXICO CITY, Oct. 9, 2020 /PRNewswire/ -- Grupo Aeroméxico, S.A.B. de C.V. ("Aeromexico" or the "Company") (BMV: AEROMEX) announces that following our previous relevant events dated August 13^th, August 19^th and September 9^th2020, regarding (a) securing the commitment for US$1,000 million senior secured superpriority multi-tranche debtor in possession term loan facility (the "DIP Facility"), (b) interim approval of the DIP Facility by Judge Shelley C. Chapman of the United States Bankruptcy Court for the Southern District of New York (the "Chapter 11 Court"), and (c) the funding of US$100 million of tranche 1 loans under the DIP Facility, today, Judge Chapman approved the DIP Facility on a final basis, which was a condition precedent to the availability of the undrawn portion of the tranche 1 loans (US$100 million), as well as the tranche 2 loans (available for an initial draw of US$175 million); such remaining availability under tranche 1 and the initial availability under Tranche 2 will be drawn in a single draw once the remaining conditions precedent to such draw are satisfied. Subsequently, and subject to the fulfilment of additional conditions and milestones, additional draws in minimum amounts of US$100 million would be made available to the Company.

Andrés Conesa, CEO of Aeromexico, commented: "The final approval of the DIP Facility by the Chapter 11 Court is a key milestone in the ongoing restructuring process for Aeromexico, which will provide us with certainty accessing liquidity to continue meeting our ongoing obligations in an orderly fashion. The future exercise of the additional funding under the DIP Facility will continue supporting our operations during our voluntary restructuring process. We recognize and appreciate the continuing support from our Board of Directors and all stakeholders, particularly from our employees, unions and authorities."

Aeromexico will continue pursuing, in an orderly manner, the voluntary process of financial restructuring under the Chapter 11 process, while continuing to operate and offer services to its customers and contracting from its suppliers the goods and services required for operations. The Company will continue to use the advantages of the Chapter 11 proceeding to strengthen its financial position and liquidity, protect and preserve operations and assets, and implement the necessary adjustments to manage 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.