Aeromexico continues negotiations with Unions
Aeromexico and unions negotiate necessary adjustments to face the adverse effects caused to the airline industry by the global pandemic of COVID-19
Grupo Aeroméxico, S.A.B. de C.V. announces that, as a follow up to its previous relevant events dated December 29 and 31, 2020, although significant progress has been made in the negotiations of the Collective Bargaining Agreements with the Asociación Sindical de Sobrecargos de Aviación de México (ASSA) and the Asociación Sindical de Pilotos Aviadores de México (ASPA), necessary adjustments to face the adverse effects caused to the airline industry due to the global pandemic of COVID-19, negotiations with said unions have not yet been concluded, pursuant to the milestones required to access disbursements under the Senior Debtor in Possession Credit Facility.
The satisfactory conclusion of such pending agreements is necessary for the Company to meet certain commitments and objectives required by the DIP lenders within the Company’s voluntary financial restructuring process, under the Chapter 11 of the Bankruptcy Code of the United States of America. Consequently, Aeromexico has requested an extension to the term provided in the Credit Agreement, which has been granted until January 27, 2021, in order to comply with the conditions and obligations under the DIP Financing.
The Company will continue to work in a coordinated manner with the representatives of the unions in order to meet the necessary conditions to request the next disbursement under Tranche 2 of the DIP Financing, which is essential to preserve the ordinary course of business and avoid defaults in its obligations with the lenders under 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.