Aeromexico Airline and Pilots Union Still At Odds
Bankruptcy Lenders for airline require agreement
Aeromexico airline and pilots union, Asociación Sindical de Pilotos Aviadores de Mexico (ASPA) which represents Mexican pilots, are still at odds over current negotiations. Agreement is necessary in order for the airline to meet the commitments and objectives required by bankruptcy lenders allowing the company to access subsequent disbursements under the Senior Debtor in Possession Credit Facility (DIP Financing).
Aeromexico (Grupo Aeroméxico, S.A.B. de C.V.) must continue negotiations with ASPA in order to reach agreement during the 7-day grace period established at the Credit Agreement (Cure Period).
The airline announced that following its previous relevant event dated December 29, 2020, although significant progress has been made in the negotiations of the new Collective Bargaining Agreements, necessary adjustments to face the adverse effects caused to the airline industry due to the global pandemic of COVID-19, negotiations with all unions that have not yet concluded, pursuant to the milestones required by the lenders to access disbursements under the Senior Debtor in Possession Credit Facility (DIP Financing), obtained within its voluntary financial restructuring process under Chapter 11 of the Bankruptcy Code of the United States of America.
Negotiations with the Asociación Sindical de Sobrecargos de Aviación de México (ASSA) continue advancing in the best conditions. Therefore, the company expects to reach agreement during the aforementioned period, which will be reported in the following days.
The company recognizes the effort that the unions have made to contain the negative effects of the pandemic and will continue to work in a coordinated manner with its representatives in order to meet the necessary conditions to request the next disbursement under Tranche 2 of the DIP Financing.
Aeromexico will continue pursuing in an orderly manner the voluntary process of its financial restructuring under the Chapter 11 process, while continuing to operate and offer services to its customers and contracting from its suppliers the goods and services required for operations. The company will continue to use the advantages of the Chapter 11 proceeding to strengthen its financial position and liquidity, protect and preserve operations and assets, and implement the necessary adjustments to manage the impact of COVID-19.