A US bankruptcy judge approved Aeroméxico’s restructuring plan on Friday after the airline reached an agreement with the rest of the creditors who had opposed the scheme.
The approval of the plan allows Aeroméxico, one of the three main Latin American airlines that declared bankruptcy during the coronavirus pandemic, to complete the restructuring process, which has been ongoing since June 2020.
“I couldn’t be more pleased to tell you that the reorganization plan is confirmed,” US Bankruptcy Judge Shelley Chapman said shortly after the deal was announced.
Aeroméxico shares rose nearly 17% on Friday, though those gains did not appear to reflect the deal with creditors and the final approval, which came as the market was about to close.
The plan provides for new capital contributions to Aeroméxico.
Apollo Global Management, a frequent investor in struggling companies, will be the largest shareholder. Delta Air Lines, the current shareholder, is expected to have a 20% stake in the company once the plan is executed.
The agreements reached on Friday have received the support of a group of smaller creditors who had opposed what they considered an excessively beneficial deal for Delta and four individual Mexican investors.