Aeromexico creditor opposes bankruptcy restructuring plan

An Aeromexico aircraft prepares to land on the airstrip at Benito Juarez International Airport in Mexico City, Mexico on April 21, 2021. REUTERS / Edgard Garrido / File Photo

MEXICO CITY, Dec.20 (Reuters) – A creditor of Aeromexico (AEROMEX.MX) on Monday opposed the Mexican airline’s restructuring plan to come out of Chapter 11 bankruptcy, saying the proposal would unfairly benefit the company. majority shareholder Delta Air Lines Inc (DAL.N).

Invictus Global Management has said in a public letter to Delta’s board of directors that it opposes the plan presented by Aeromexico.

Aeromexico announced last week that an anonymous third party would make a takeover bid valuing its outstanding shares at a fraction of their previous market price as part of its efforts to come out of bankruptcy.

Delta’s stake would be diluted to 20%, while Apollo Global Management (APO.N), a fund that often invests in failed companies, would become Aeromexico’s largest shareholder.

“The light of day must shine on the actions and decisions that could position you to earn hundreds of millions of dollars at the expense of other stakeholders, including the many who risk being economically crushed by Delta’s preferred plan. and Apollo, ”the letter reads. , signed by Invictus partner Cindy Chen Delano.

He added that the proposal included “seemingly egregious financial terms that defy decades of bankruptcy precedent.”

Invictus is a shareholder of Delta as well as a significant creditor of Aeromexico, he said.

Aeromexico said it had no comment, while Delta did not immediately respond to a request for comment.

Aeromexico shares rose more than 17% shortly after markets opened on Monday, regaining some of the ground lost following steep falls following the announcement of the restructuring plan.

Reporting by Daina Beth Solomon and Noe Torres; Editing by Lisa Shumaker

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