Aeromexico shareholders back Mexico stock exchange exit in bankruptcy restructuring

Aeromexico shareholders back Mexico stock exchange exit in bankruptcy restructuring Planes of Mexican airline Aeromexico in hangars at Benito Juarez International Airport in Mexico City.

MEXICO CITY - Aeromexico said on Tuesday that a majority of its shareholders approved a proposal to leave the main Mexican stock exchange as part of the airline's bankruptcy restructuring.

Shareholders approved a plan to cancel registration of shares and their listing on the stock exchange on Monday in order to initiate a buy-back program, the company said in a statement.

Aeromexico filed for bankruptcy in June 2020 after the coronaviruses slashed travel demand, and emerged from bankruptcy protection in March with a $5 billion investment plan and changes to its fleet.

Delta Airlines, which had a 49% stake in Aeromexico before Chapter 11 bankruptcy proceedings, ended up with a 20% share. Following Chapter 11 the company's largest shareholder was Apollo Global Management, which became the company's largest shareholder.

The bankruptcy practice of Hughes Hubbard Reed, which served as lead counsel to Delta Airlines, said that Aeromexico used its status as a Chapter 11 debtor to negotiate.

Coleman said that Aeromexico was able to optimize their fleet in negotiating with aircraft leasing companies, as a result of the fact that they were negotiating with aircraft leasing companies.

Coleman said that Aeromexico's delisting was outlined in the company's so-called registration rights agreement in Chapter 11 proceedings.

The old shares are cancelled and the new shares of a company are issued. Coleman said that Mexican law requires delisting as part of that process.

Aeromexico is the latest Mexican company to go private, according to the move.

Of the around 150 companies listed on Mexico's main stock exchange, seven, including dairy producer Grupo Lala, telecommunications firm Maxcom and paper producer Bio Pappel, have recently delisted or announced plans to do so.