GRUPO AEROMEXICO SUCCESSFULLY COMPLETES FINANCING

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Mexico, March 17, 2022 (GLOBE NEWSWIRE) — GRUPO AEROMEXICO SUCCESSFULLY COMPLETES ITS FINANCIAL RESTRUCTURING AND EXITS THE CHAPTER 11 PROCESS

  • The company emerges from Chapter 11 well positioned for long-term success.
  • As part of the court-approved joint reorganization plan, the Company privatized recognized unsecured receivables (approximately US$2.3 billion) and certain receivables under its DIP facility (approximately US$750 million) obtained during the Chapter 11 process, and also privatized new capital contributions of over US$700 million.
  • Aeromexico will continue to serve customers, honor the milestone program, restart service on select international routes, and open new routes, while maintaining strict protocols to protect the health and safety of employees and customers. .
  • Aeromexico continues to be Mexico’s flagship airline in full compliance with all applicable Mexican laws and requirements under public concessions granted by the federal government, controlled by Mexican investors.
  • Over the next 5 years, Aeromexico will invest more than 5 billion dollars in the fleet and other relevant actions to consolidate the improvement of the customer and employee experience.

MEXICO CITY, March 17, 2022 – Grupo Aeromexico, SAB de CV (“Aeromexico” or the “Company”) (BMV: AEROMEX) today announced that it has successfully completed its financial restructuring process and exited its Chapter 11 following court confirmation of its joint reorganization plan without objections and fulfillment of certain conditions.

The reorganized company is valued (equity plan value) at US$2.56 billion and its major shareholders include funds managed by Apollo Global Management, Delta Air Lines, as well as existing and new Mexican investors who formed the control group. Baupost Group, Silver Point Capital, Oaktree Capital Management and other funds that were part of the ad hoc group of joint creditors are also shareholders. The investor group funded US$720 million in new capital in addition to other amounts related to accrued fees on the DIP facility and new capital contributions payable in new shares, as planned.

Additionally, key stakeholders subscribed to the company’s new exit debt issuance of approximately US$762.5 million in US notes, totaling approximately US$1.5 billion in new capital, demonstrating their recognition of the long-term value the company can create in serving customers as Mexico’s flag carrier.

A new board of directors has been formed, composed of a majority of Mexican nationals and independent members in full compliance with Mexican laws and regulations regarding foreign investment, as well as the continued participation of existing Mexican investors, the Chairman of the Board, Javier Arrigunaga and CEO, Andrés Conesa.

“Today is an incredibly exciting day for Aeromexico and we are poised to reach new heights as we emerge from Chapter 11. We look forward to beginning a new chapter in our company’s history, backed by a strong financial foundation. , a solid capital structure and investors who have full confidence in our future Thanks to the dedication of the entire talented Aeromexico family, as well as the support, trust and empathy of our customers, unions, authorities, suppliers and business partners, we have completed this process As we move forward, we will not only continue to streamline our business to become even more sustainable, resilient and competitive, but we will also significantly expand our network and fleet, while providing excellent service and maintaining our position as Mexico’s flagship airline,” said Mr. Conesa.

Throughout the restructuring process, Aeromexico has worked to expand its operations in a sustainable way, opening six new routes, restarting service on more than 30 and increasing its total seat supply by more than 320% per year. compared to June 2020 figures. The company currently serves 84 domestic and international routes, connecting bustling cities in Mexico, such as Guadalajara and Monterrey, to the European market via Madrid. In 2022, Aeromexico plans to continue this momentum, in particular by restarting services to London.

As Aeromexico moves into the future with a strengthened balance sheet, the company’s fleet will play a vital role in its continued transformation. Since 2021, Aeromexico has received 31 aircraft and expects to receive another 22 during 2022. By the end of this year, the company expects to have a fleet of 147 aircraft with an average age of seven years, making it the strongest fleet. and an efficient fleet in the Mexican market, offering greater passenger comfort, lower operating costs and greater respect for the environment.

To honor the commitments made during the process, over the next 5 years Aeromexico will invest $5 billion in the fleet and other relevant actions to consolidate the customer and employee experience, which will be more sustainable, in line with its environment. , sustainability and governance (ESG ) strategy.

Davis Polk & Wardwell LLP and Sainz Abogados SC are acting as legal advisors to Aeromexico, Rothschild & Co. is acting as financial advisor and AlixPartners, LLP is acting as operational advisor in the restructuring of the Company.

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About Grupo Aeromexico

Grupo Aeromexico, SAB de CV, 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 at Mexico City International Airport. Its network of destinations extends to Mexico, the United States, Canada, Central America, South America, Asia and Europe. The Group’s current operational fleet includes Boeing 787s and 737s, as well as the latest generation Embraer 190s. Aeromexico is a founding partner of SkyTeam, an alliance which celebrates its 20th anniversary and offers connectivity in more than 170 countries, through the 19 partner airlines. Aeromexico has created and implemented a Health and Hygiene Management System (HSMS) to protect its customers and employees at all stages of its operation.

Media Contacts

Mexico

Aeromexico Corporate Communication

Christian Pastrana

[email protected]

WolfBoomerang & Co

Eugene Herrera

[email protected]

United States

Sard Verbinnen & Co

Jared Levy/John Christiansen/Suzanne Byowitz

[email protected]

Investor contacts

Investor Relations

[email protected]

  • Press release – Grupo Aeromexico


        
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