After the COVID-19 pandemic triggered unprecedented declines in passenger demand, Aeroméxico filed for Chapter 11 bankruptcy to stabilize its liquidity, restructure its fleet, optimize its cost structure and strengthen its financial position. The Official Committee of Unsecured Creditors for Aeroméxico engaged FTI Consulting as an investment banking, aviation and financial advisor to advise on Debtor-In-Possession (“DIP”) and exit financing, fleet and network restructuring, creditor recoveries and the company's plan of reorganization.
Aeroméxico equitized more than $3 billion in secured and unsecured claims and raised $1.5 billion in exit financing — driving unsecured creditor recoveries to more than 500% above initial proposals.
DIP financing fees were reduced, a newly implemented global calculation methodology lowered and expedited aircraft claims settlements and an advanced strategy secured Aeroméxico’s full ownership of PLM Premier, S.A.P.I. de C.V (“PLM”), the operator of its Club Premier loyalty program.
Unsecured creditor recoveries were more than 500% above initial proposals following the reestablishment of competitive bidding for exit financing, improved investor-facing diligence materials and the engagement of additional investors.
Aeroméxico successfully emerged from bankruptcy in March 2022, with significant liquidity, a restructured fleet and network and reduced operating costs.
FTI Consulting advised on all aspects of Aeroméxico's Chapter 11 bankruptcy filing, including negotiating the terms for $1 billion DIP financing, evaluating the fleet, labor and cost restructuring plan, assessing the revised network strategy and negotiating the plan of reorganization and creditor recoveries.
Our experts worked with Aeroméxico's fleet advisor to secure interim power-by-the-hour (“PBH”) arrangements, restructure an order for 54 Boeing 737 MAX aircraft, reduce long-term lease and maintenance costs and develop a global claims methodology to negotiate more than $1.2 billion in aircraft claims.
We actively engaged in discussions and negotiations with potential exit financing providers and helped secure over $1.5 billion in new equity and debt financing.
Restructuring Deal of the Year ($1 Billion to $5 Billion), 14th Annual International M&A Awards, M&A Advisor
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