Aeromexico announces final approval of DIP facility by Chapter 11 Court  

Grupo Aeroméxico has announced the receipt of final approval for $1bn senior secured superpriority multi-tranche debtor-in-possession (DIP) term loan facility. 

Alternative asset managers Apollo Global Management has secured court consent to provide a bankruptcy loan for Aeromexico, reported Bloomberg.  

The approval was given by Judge Shelley C Chapman of the United States Bankruptcy Court for the Southern District of New York. 

In August this year, the carrier filed for DIP financing motion to maintain adequate liquidity position after filing for voluntary Chapter 11 petitions in the US the previous month.  

Aeromexico CEO Andrés Conesa said: “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 recognise and appreciate the continuing support from our Board of Directors and all stakeholders, particularly from our employees, unions and authorities.” 

Meanwhile, Aeromexico will continue to operate and offer services to its customers. 

It will also leverage the Chapter 11 proceeding to boost its financial position and liquidity, as well as safeguard assets and business. 

Further, necessary adjustments will be made to deal with the impact of Covid-19 pandemic. 

Last month, Latin American largest carrier LATAM Airlines received approval from the Court of the Southern District of New York for the modified debtor-in-possession (DIP) financing proposal that was filed on 17 September 2020.