Google filed an objection to the Reorganization Plan under Chapter 11 of Aeroméxico before the Court of the Southern District of New York, claiming a debt of more than 530,000 dollars that, under the conditions of the restructuring, the airline has not settled.
According to the objection filed by the law firm White and Williams LLP on behalf of the Alphabet subsidiary, although the United States Bankruptcy Code allows a contract to be considered enforceable – subject to its assumption, assignment or payment of cure–, this remedial payment (for 530,905.32 dollars) was not made.
The debt is derived from contracts for services such as Google Ads, Cloud, Search Ads 360, Campaign Manager and Display & Video 360.
“Most companies consider that Google ads and other services (…) are critical to their business, and Google will not continue to provide the services to the Debtors [Aeroméxico] unless the contracts are fully assumed and resolved” says the objection.
“To the extent that the Debtors wish to continue using their Google Ads accounts and receiving services under the contracts (…), the remedy amount associated with the assumption of the contracts is $530,905.32 to date”, adds the document.
The debt could amount to 1,018,234.23 dollars if it is not settled by February 14, and even increase to 1,549,139.55 dollars if the correction amount is not paid, warns the objection.
“Google respectfully requests that this Honorable Court condition the Debtors’ continued use of Google Ads services (…) on the assumption of the Agreement and the payment of not less than $530,905.32 in reparation amount (…) [already] provide such additional relief as this court deems just and appropriate.”
As part of the restructuring initiated under Chapter 11 since June 2020, Aeroméxico has been able to reach various agreements with its creditors to extend the debts for various services provided.
To get out of Chapter 11, the airline has prepared a Restructuring Plan whose confirmation is pending at a hearing scheduled for January 27, and which has already been approved by 86% of its creditors, including Google, which is will reserve the right to vote in the absence of payment of the contracts, as stated in the documents presented to the Court.
