Mexico flag carrier Aeroméxico has filed for debtor-in-possession (DIP) financing motion to maintain adequate liquidity position.
It was filed before US Bankruptcy Court for the Southern District of New York judge Shelley Chapman.
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The motion is a continuation of the financial restructuring process it initiated on 30 June.
It formalises commitments for up to $1bn of DIP financing with investment manager firm Apollo Global Management (APO).
The DIP facility comes in two tranches, specifically a senior secured Tranche 1 facility of $200m and a senior secured Tranche 2 facility of $800m. It is subject to court approval.
The carrier will leverage proceeds for working capital expenses, general corporate purposes and restructuring costs.
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By GlobalDataIt is expected to Aeromexico with liquidity to meet its future obligations in a timely and orderly fashion, as well as continue with operations during and after the restructuring process.
Aeromexico CEO Andrés Conesa said: “This is a critical milestone in the ongoing process to transform our company with the goal of driving long-term, sustainable growth for Aeromexico.
“Throughout this process, we will continue to provide our customers with the exceptional service and flight experience they expect from Aeromexico, and we will continue all day-to-day operations, albeit under these extraordinary Covid-19-related circumstances.
“This milestone is a recognition of Aeromexico’s fundamentally solid operating business and proven strategy.”
In May, Aeromexico signed a binding letter of intent (LoI) with AIMIA over proposed changes to shareholder and commercial agreements (CPSA).
South American carrier LATAM Airlines, along with its affiliates in Chile, Peru, Colombia, Ecuador and the US, initiated the voluntary reorganisation and restructuring in the same month.
