EconomyFinancialAeroméxico commits part of its profits until 2025 to...
Financial

Aeroméxico commits part of its profits until 2025 to pay creditors

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Up to 40 million dollars (mdd) of Aeroméxico’s profits between this year and 2025 will be committed to pay two classes of creditors of the airline, for the approval of its restructuring plan under Chapter 11 of the United States Bankruptcy Code .

The airline details in a supplement to its restructuring plan, filed with the Court of the Southern District of New York, that the agreement of 40 million dollars will be given through distributions of earnings before interest, taxes, depreciation, amortization and costs of restructuring or rents (EBITDAR, for its acronym in English).

These distributions will be made during fiscal years 2022, 2023, 2024 and 2025, and will be used to pay the qualified creditors of Class 3(c) and Class 3(d), also known as the general unsecured creditors of Aerovías and Aerovías. Aeromexico Connect, respectively.

Each fiscal year will have a different cap. While in 2022 up to 7.5 million dollars of EBITDAR will be distributed to creditors – estimated at 728 million dollars for that year –, for 2025 an allocation of 15 million dollars of profits is expected, calculated at 1,604 million dollars. Consistent with the airline’s EBITDAR targets, these distributions will represent between 0.7% and 1% of each fiscal year’s earnings.

75% of the available EBITDAR amount will go to Class 3(d) creditors, while the remaining 25% will go to Class 3(c) creditors.

In the event that the EBITDAR available for this payment is zero or even negative, no payment will be made to creditors, and no other claims may be made to Aeroméxico or its subsidiaries. The payment instrument linked to EBITDAR has an expiration date of December 31, 2025.

Aeroméxico has begun to take its first steps to implement its restructuring plan, approved by the Court on January 28.

Yesterday the firm released a binding letter of intent for the acquisition of 48.85% of PLM Premier, which is currently in the hands of the Canadian firm Aimia, with the aim of taking control of 100% of the Club Premier loyalty program, where it already had a 51.14% stake.

The airline has scheduled a shareholders’ meeting for next February 14, with the aim of refining the actions for the execution of its restructuring plan.

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