Aeromexico Concludes Restructuring out of Bankruptcy

March 17, 2022

Grupo Aeromexico SAB has emerged from its restructuring process and will invest $5 billion over the next five years to expand its fleet as it prepares to start growing again.

Aeroméxico has consummated its Plan of Reorganization (and ancillary documents thereto) (jointly, the "Plan of Reorganization"); and it has successfully concluded its financial restructuring process and emerged from its Chapter 11.

The delivery of the new listed and consolidated shares (reflecting the effects of the consolidation (reverse split) of shares), representing the new capital stock of the Company as of today, will be delivered, directly through the S.D Indeval, Institución para el Depósito de Valores, S.A. de C.V., or through the custodian broker S3 Caceis, in favor of the brokers and/or custodians of shareholders owning shares representing the new capital stock of Aeroméxico.

As set forth in the Plan of Reorganization, the equity value of the reorganized Company ("Plan Equity Value") is approximately US$2,564'000,000.00 dollars, and the new outstanding listed shares are 136,423,959 (excluding treasury shares pending to be subscribed in the amount of 13,642,396). The authorized total amount of shares issued by the Company are 150,066,355 shares.

The theoretical value of the new shares is approximately of $389.0187 pesos per share (Plan value of the Company (US$2,564'000,000.00 dollars) divided by new subscribed shares (136,423,959), which results in approximately US$18.79 dollars per share converted at the official exchange rate ($20.7035 pesos per one dollar of the United States of America) published today by the Central Bank of Mexico in the Official Gazette of the Federation (Diario Oficial de la Federación)), which should start being reflected by the market.

The largest shareholders of the reorganized Company include funds managed by Apollo Global Management, Delta Air Lines, as well as existing and new Mexican investors that formed the group with voting control.

The Baupost Group, Silver Point Capital, Oaktree Capital Management and other funds that were part of the ad hoc groups of creditors are also shareholders after investing approximately US$720 million in new capital. This is in addition to other amounts related to fees accrued on the "DIP Facility" and on the new equity contributions payable in new stock as provided in the Plan of Reorganization.

"Today is an incredibly exciting day for Aeroméxico and we are ready to soar to new heights as we emerge from Chapter 11. We look forward to starting a new chapter in our Company's history, backed by a sound financial base, solid capital structure, and investors who have full confidence in our future. Thanks to the dedication of the entire talented Aeroméxico family, as well as the support, trust, and empathy of our customers, unions, authorities, suppliers, and business partners, we have successfully completed this process. As we move forward, we will not only continue to streamline our Company to become even more sustainable, resilient, and competitive, but we will also significantly expand our network and fleet – all while offering excellent service and maintaining our position as Mexico's flagship airline", said Mr. Conesa.

Source: Aeromexico

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