Akin Advises Bondholders in Aeroméxico Chapter 11

(New York) – Grupo Aeroméxico, S.A.B. de C.V., the parent company of Mexico’s flagship airline, has announced the successful completion of its financial restructuring process and emergence from chapter 11, following the court’s confirmation of Aeroméxico’s joint plan of reorganization without objections and fulfillment of certain conditions. An interdisciplinary team of Akin Gump lawyers advised the ad hoc group of holders of 7.000 percent senior unsecured notes due 2025 of Aerovías de México, S.A. de C.V. throughout the restructuring.

Pursuant to the joint plan of reorganization, all senior unsecured noteholders received a recovery equal to the outstanding principal amount of the senior unsecured notes, plus accrued and unpaid interest as of the date of filing of the chapter 11 cases. In addition, certain members of the ad hoc group also provided a significant portion of the approximately $1.5 billion of new money equity and debt financing that the company required to emerge from chapter 11. 

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Ira Dizengoff, the leader of Akin Gump’s financial restructuring practice said, “We congratulate the company and our clients on the successful conclusion of the chapter 11 cases. We are very pleased that our efforts, which spanned a number of key Akin Gump practices, resulted in a 100 percent recovery for our unsecured noteholder clients on account of debt that at the outset of the cases was trading at as much as a 75-80 percent discount to par. When the recovery on the notes is viewed alongside the significant new money investment opportunity afforded our clients, it is clear that the outcome of these chapter 11 cases was a huge success for our clients.”

The Akin Gump team advising the bondholder group was led by financial restructuring partner David Botter with fellow financial restructuring partner Jason Rubin, corporate partner Alan J. Feld and finance partner Meng Ru. They were joined by:

• financial restructuring partner Abid Qureshi, senior counsel Joanna Newdeck and associate Malak Doss
• litigation partner Joseph Sorkin, counsel John Kane and Kaitlyn Tongalson and associate Jillian Kulikowski
• corporate senior counsel Erica McGrady and counsel Douglas Badini and Frankie Shulkin
• finance partners Rosa Testani and Eric Muñoz and associates Joseph Lumley and Mary Kate Thompson
• tax partners Howard Jacobson and Brandon Morris.

Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia.

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