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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Wed Dec 30, 2020 3:04 am

AM says it has reached agreements with 2 of its 3 main unions covering ground workers and flight attendants as part of its restructuring process.
Talks continue with pilots as the company seeks to achieve the necessary concessions for its DIP lenders to release tranche 2 funding.

https://www.prnewswire.com/news-release ... 99176.html
 
MIflyer12
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Re: Updated: Aeroméxico files for Chapter 11

Thu Dec 31, 2020 8:43 pm

Speed bump on the pilot agreement:

MEXICO CITY (Reuters) - Mexican pilots have rejected a cost-saving plan put forward by their own trade union amid talks aimed at agreeing how to restructure airline Grupo Aeromexico, the ASPA union said on Thursday.

https://www.reuters.com/article/us-mexi ... SKBN2951PR
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Tue Jan 12, 2021 4:43 am

Aeromexico asked Mexican labor authorities its cancel its collective bargaining agreements with its pilot and flight attendant unions.

The company claims "force majeure" and says the move is required as it works keep its bankruptcy restructuring on track.

https://www.flightglobal.com/strategy/a ... 12.article
 
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UPlog
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Re: Updated: Aeroméxico files for Chapter 11

Tue Jan 12, 2021 4:09 pm

Without a CBA, presume pilots and flight attendants can stop working. Seems like the nuclear option to risk a strike by the company.
 
hiflyeras
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Re: Updated: Aeroméxico files for Chapter 11

Tue Jan 12, 2021 4:23 pm

Not sure how Mexican labor law works but in the US this would lead to the company imposing their own 'contract' or set of work rules. Staff could either work under those rules or choose a work stoppage. Negotiations would continue with the labor leaders and hopefully an agreement would be made to return everyone to work but the power here is in the hands of the company. In the current environment I think many would opt to cross a picket line and go back to work...they haven't had a paycheck for how many months?
 
ScottB
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Re: Updated: Aeroméxico files for Chapter 11

Tue Jan 12, 2021 5:02 pm

hiflyeras wrote:
Not sure how Mexican labor law works but in the US this would lead to the company imposing their own 'contract' or set of work rules. Staff could either work under those rules or choose a work stoppage. Negotiations would continue with the labor leaders and hopefully an agreement would be made to return everyone to work but the power here is in the hands of the company. In the current environment I think many would opt to cross a picket line and go back to work...they haven't had a paycheck for how many months?


U.S. labor law (for airlines which are governed by the Railway Labor Act) also allows for the establishment of a Presidential Emergency Board which would force strikers back to work. Mexican labor law is likely different although it wouldn't surprise me if Mexican law gives greater power to the executive. AMLO's legislative alliance controls both houses of the Mexican Congress so he could probably also push through something which would an end to a strike.
 
MIflyer12
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Re: Updated: Aeroméxico files for Chapter 11

Tue Jan 12, 2021 5:17 pm

UPlog wrote:
Without a CBA, presume pilots and flight attendants can stop working. Seems like the nuclear option to risk a strike by the company.


Why? Under U.S. law the situation remains 'status quo,' does it not? Labor contracts become amendable - they do not expire. How is Mexican law different?
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Fri Jan 15, 2021 7:19 pm

AM to layoff 374 additional flight attendants as part of its restructuring. This is in addition to the 600+ previously let go.
 
KLAM
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Re: Updated: Aeroméxico files for Chapter 11

Fri Jan 15, 2021 11:35 pm

There is precedent on this... The Federal Conciliation and Arbitration Board determined that airlines could reduce compensations citing "force majeure"; however, the Flight Attendants' Union (ASSA de México) appealed, and the Supreme Court of Justice overturned this decision in 2015 stating that "force majeure" is not enough grounds for abolishing or modifying the collective agreements. I wonder how things will turn out this time.

https://cimacnoticias.com.mx/noticia/sc ... -mexicana/
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Thu Jan 28, 2021 3:56 pm

The Association of Airmen Pilots (ASPA) agreed to accept cuts amounting to $350 million over four years in negotiations to help Grupo Aeromexico pave the way to unlock a second tranche of bankruptcy financing.
The agreement represents a 5-15% reduction in wages and 79 pilots facing job cuts will be receiving buyouts.

https://www.nasdaq.com/articles/aeromex ... 2021-01-28

Similarly, the company yesterday reached an agreement with flight attendants union ASSA on revised CBA, but I don't have any details.
 
danipawa
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Re: Updated: Aeroméxico files for Chapter 11

Sat Jan 30, 2021 11:54 pm

Boeing 787 -8 35306 115 N961AM AeroMéxico ferried 30jan21 MEX-TUS-GYR, for EuroAtlantic Airways

https://www.skyliner-aviation.de/regdb. ... av4&page=4
 
Gregd75
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Re: Updated: Aeroméxico files for Chapter 11

Tue Feb 02, 2021 6:43 am

N961AM was possibly one of the first 787-8s to arrive, and as it has a ‘N’ registration, I would it imagine it was leased about 5 or so years ago. The lease has come up and they have let it go, as AM seem to be more interested in 787-9 than 8s these days. (Which makes a lot of sense).

I flew on N961AM a couple of times to London... but that route is suspended now, along with other 8 routes, Barcelona, Tokyo, Shanghai. No need for the plane, I guess.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Mon Feb 08, 2021 5:53 pm

Grupo Aeromexico asked the court to extend the deadline to submit its restructuring plan by 4 months, currently scheduled due by April 24.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Thu Feb 18, 2021 8:46 pm

Grupo Aeromexico announced a consolidated net loss of US$2.1 billion for 2020.

https://www.prnewswire.com/news-release ... 29436.html
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Tue Mar 16, 2021 8:31 pm

Seems Delta is pushing to replace AM CEO Andres Conesa to lead the restructured airline and work to recover lost ground to low-cost companies Volaris and VivaAerobus. AM domestic market share has slipped to mere 20%.

https://www.reportur.com/mexico/2021/03 ... co-crisis/
 
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usdcaguy
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Re: Updated: Aeroméxico files for Chapter 11

Tue Mar 16, 2021 9:10 pm

LAXintl wrote:
Seems Delta is pushing to replace AM CEO Andres Conesa to lead the restructured airline and work to recover lost ground to low-cost companies Volaris and VivaAerobus. AM domestic market share has slipped to mere 20%.

https://www.reportur.com/mexico/2021/03 ... co-crisis/


This doesn't surprise me. Volaris and VivaAerobus have both taken over a lot of routes AM used to fly within Mexico and to the US. It would be nice to see what, exactly, Aeromexico will do this time around to ensure that it grows. Delta has been able to capture a revenue premium in the past by providing a premium product and by attempting to grow in targeted O&D markets such as AUS-RDU. I would suspect, then, that DL will be looking for an aggressive CEO that will turn over a lot of rocks to find new revenue opportunities. Though AM is somewhat hamstrung by the pricing environment within Mexico, it remains the only Mexican carrier that is part of a global alliance and that offers long-haul international routes. It is also the carrier of choice among business travelers, though it remains to seen how much of that segment will recover and when.
 
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mercure1
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Re: Updated: Aeroméxico files for Chapter 11

Tue Mar 16, 2021 9:26 pm

It seems to me, for AM to grow in Mexico, it needs to grow outside Mexico City where it has retrenched to in recent years. This means going after the ethnic markets in inland Mexico and tourist traffic on the coast.
In order to do that it needs low cost to meet the ULCCs head on, but even after bankruptcy AM will be a legacy player with all the complications and cost burden such overhead brings.
Also the loss of Mexico City airport development will hinder dreams of creating its MEX megahub.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Wed Apr 21, 2021 4:49 pm

AM reported 1Q 2021 earnings - revenue down 51.3% to US$347 million, with net loss of $212 million.

https://aeromexico.com/cms/sites/defaul ... _Final.pdf
 
LatinPlane
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Re: Updated: Aeroméxico files for Chapter 11

Wed Apr 21, 2021 8:12 pm

LAXintl wrote:
AM reported 1Q 2021 earnings - revenue down 51.3% to US$347 million, with net loss of $212 million.

https://aeromexico.com/cms/sites/defaul ... _Final.pdf



Not bad as January was pretty weak due to resurgence with COVID, but things were starting to look up. By March the airline had registered an overall load factor of 75.3% with a pretty impressive domestic load factor of 86.4%. If things continue to get better the airline is on its way to start breaking even again soon.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Fri Apr 23, 2021 10:08 pm

AM has reached an agreement with Boeing and lessors to add 28 aircraft to its fleet -- 24 737MAX + 4 787-9, while returning 18 older leased aircraft.

The move will save it long-term maintenance and leasing cost.

Agreement subject to BK court approval.

https://www.globenewswire.com/news-rele ... TIONS.html
 
jbs2886
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Re: Updated: Aeroméxico files for Chapter 11

Fri Apr 23, 2021 10:22 pm

LAXintl wrote:
AM has reached an agreement with Boeing and lessors to add 28 aircraft to its fleet -- 24 737MAX + 4 787-9, while returning 18 older leased aircraft.

The move will save it long-term maintenance and leasing cost.

Agreement subject to BK court approval.

https://www.globenewswire.com/news-rele ... TIONS.html


Cancelling remaining aircraft from Boeing and the 4 787s were previously ordered from lessors. They are not returning 18 aircraft, but rather returning some and reducing costs on others. The PR is just bad. Bankruptcy filing: https://document.epiq11.com/document/ge ... &source=DM

Disappointed to see the cancellations, but I anticipate AM can get more aircraft if it needs.
 
Sancho
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Re: Updated: Aeroméxico files for Chapter 11

Sun Apr 25, 2021 6:02 pm

LatinPlane wrote:
LAXintl wrote:
AM reported 1Q 2021 earnings - revenue down 51.3% to US$347 million, with net loss of $212 million.

https://aeromexico.com/cms/sites/defaul ... _Final.pdf



Not bad as January was pretty weak due to resurgence with COVID, but things were starting to look up. By March the airline had registered an overall load factor of 75.3% with a pretty impressive domestic load factor of 86.4%. If things continue to get better the airline is on its way to start breaking even again soon.


They even had a higher load factor than Volaris and Viva Aerobus!
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Thu Jun 10, 2021 3:10 pm

Aeromexico asked the court for additional extension until 25 October 2021, to submit its reorganization plan.

Also reported the carrier is looking for alternate lenders which could replace Apollo Global Management which funded the $1 billion rescue plan for the airline last year.

https://www.bloomberg.com/news/articles ... ate-lender
 
slcdeltarumd11
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Re: Updated: Aeroméxico files for Chapter 11

Sat Jun 12, 2021 6:49 pm

IMHO I don't see alot of lenders wanting to involved with such a mismanaged company like aero mexico.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Fri Jul 02, 2021 4:12 pm

Delta announced it will exercise its option to purchase a portion of Aeromexico’s DIP Financing commitments. In total, it intends to spend US$185 million plus interest

https://simpleflying.com/delta-aero-mex ... -purchase/
 
asuflyer
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Re: Updated: Aeroméxico files for Chapter 11

Thu Jul 08, 2021 3:28 am

Aeromexico is in the process of taking delivery of 6 secondhand 737-800's ex Norwegian and TUI to replace older examples and 737-700's. The following registrations have been allocated.

XA-EBN
XA-OCA
XA-OCB
XA-OCC
XA-OOO
XA-PPP

https://simpleflying.com/aeromexico-10- ... 37-planes/
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Thu Jul 15, 2021 3:06 pm

Delta's plan to acquire some debt of Aeroméxico has created some doubts and could require further antitrust and other regulatory review.

https://www.lapoliticaonline.com.mx/not ... con-delta/

Separately a group of unidentified Mexican investors notified the airline they would be willing to participate in the new capital increase in return for "long-term, controlling, material investment" in the airline

https://www.latinfinance.com/daily-brie ... investment
 
dcajet
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Re: Updated: Aeroméxico files for Chapter 11

Tue Jul 20, 2021 8:20 pm

Barely 3 months after slashing its 737 MAX commitments with Boeing, Aeromexico is back with a lease deal for 12 of the jets. It hopes to have the first in service in time for the year-end holiday travel season.

https://airlineweekly.com/2021/07/aerom ... -max-deal/
 
dcajet
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Re: Updated: Aeroméxico files for Chapter 11

Tue Jul 20, 2021 9:36 pm

dcajet wrote:
Barely 3 months after slashing its 737 MAX commitments with Boeing, Aeromexico is back with a lease deal for 12 of the jets. It hopes to have the first in service in time for the year-end holiday travel season.

https://airlineweekly.com/2021/07/aerom ... -max-deal/


Leased from Dubai Aerospace Enterprise; 12 "white tails" frames.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Mon Aug 09, 2021 3:51 pm

Creditors asked the BK court to postpone approval on lease of 12 B737MAX from Dubai Aerospace Enterprise. Creditors say company has failed to justify business case over the cost of the leases versus other models.
Hearing planned August 23.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Thu Aug 12, 2021 5:49 pm

Aeromexico obtained interim order authorizing it to continue with the leasing process for 12 B737MAX aircraft from DAE, though now the court hearing regarding the deal is pushed to August 31.
 
asuflyer
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Re: Updated: Aeroméxico files for Chapter 11

Fri Sep 17, 2021 2:55 am

According to the latest bankruptcy dockets, Aeromexico will return the following aircraft to its lessors.
(1) 788 N964AM
(1) 789 XA-ADC
(3) 738 XA-MIA, XA-ZAM, XA-AMG (in 2022 Q1)
 
jbs2886
Posts: 3491
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Re: Updated: Aeroméxico files for Chapter 11

Fri Sep 17, 2021 2:59 am

asuflyer wrote:
According to the latest bankruptcy dockets, Aeromexico will return the following aircraft to its lessors.
(1) 788 N964AM
(1) 789 XA-ADC
(3) 738 XA-MIA, XA-ZAM, XA-AMG (in 2022 Q1)


Too bad too I see the 787 returns.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Wed Sep 22, 2021 3:43 pm

Aeromexico was granted another extension until October 8 to present its restructuring plan.
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Sat Oct 02, 2021 1:42 am

AM tonight filed their POR (Plan of Reorganization) with the court. Initial hearing on October 11th.

Highlights of their proposed business strategy:
o Strengthen and leverage Mexico City hub by improving network/schedule and enhance connectivity.
o Maximizing a streamlined fleet
o Rebuild and restore commercial partnerships (DL/LATAM/Skyteam/etc)
o Strengthen loyalty program
o Pursue revenue management initiatives (upsell/merchandising/unbundling/sales channels)

They project they will manage breakeven/positive net income as soon as 2022.
 
jbs2886
Posts: 3491
Joined: Wed Apr 01, 2015 9:07 pm

Re: Updated: Aeroméxico files for Chapter 11

Sat Oct 02, 2021 1:54 am

LAXintl wrote:
AM tonight filed their POR (Plan of Reorganization) with the court. Initial hearing on October 11th.

Highlights of their proposed business strategy:
o Strengthen and leverage Mexico City hub by improving network/schedule and enhance connectivity.
o Maximizing a streamlined fleet
o Rebuild and restore commercial partnerships (DL/LATAM/Skyteam/etc)
o Strengthen loyalty program
o Pursue revenue management initiatives (upsell/merchandising/unbundling/sales channels)

They project they will manage breakeven/positive net income as soon as 2022.


Link for everyone: https://document.epiq11.com/document/ge ... &source=DM (formal plan document) and https://document.epiq11.com/document/ge ... &source=DM (disclosure statement with substantive discussion)
 
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ojjunior
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Re: Updated: Aeroméxico files for Chapter 11

Thu Oct 07, 2021 11:50 am

Just got this in my inbox as a registered AM FF:

On October 1, 2021, the Debtors’ filed the Debtors’ Motion to Approve the (I) the Shortened Notice and Objection Periods for Debtors’ Disclosure Statement Motion, (II) Adequacy of Information in the Disclosure Statement, (III) Solicitation and Voting Procedures, (IV) Forms of Ballots, Notices and Notice Procedures in Connection Therewith, and (V) Certain Dates with Respect Thereto [Docket No. 1808]. A hearing on the Motion will be held on October 21, 2021 at 9:00 a.m. (prevailing Eastern Time). Any responses or objections to the Motion must be filed and received no later than October 15, 2021 at 4:00 p.m. (prevailing Eastern Time).

https://trk.cp20.com/click/gcrt-2kx44-1frmc-4hwnh59/

Can anyone explain what this means?
 
MIflyer12
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Re: Updated: Aeroméxico files for Chapter 11

Thu Oct 07, 2021 11:59 am

It means they're pushing to get the Plan of Reorganization (mentioned by LAXintl just above) approved by the court quickly.
 
LatinPlane
Posts: 2643
Joined: Mon Dec 27, 1999 11:05 am

Re: Updated: Aeroméxico files for Chapter 11

Thu Oct 07, 2021 10:51 pm

The real news is that AM is getting $1.1875 billion in new equity infusion from its current owners (including Delta) and creditors, plus it has also secured another $500 million in loans to fund continued growth, including buying back its frequent flyer program, all while having shed approximately 20% costs relating to labor and aircraft lease expenses. Pretty successful reorganization plan that will continue to focus on being a full-service airline but a much more efficient airline with a cost structure closer to the likes of the ultra-low-cost carriers now dominating Mexican skies.

https://www.reuters.com/legal/transactional/grupo-aeromexico-reorganization-plan-rests-new-equity-debt-financing-2021-10-04/

On top of that airline will get a new HQ on Mexico City's main financial district, currently under construction.

Image
 
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LAXintl
Posts: 25627
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Re: Updated: Aeroméxico files for Chapter 11

Fri Oct 15, 2021 3:36 pm

Apollo Global Management accused Aeromexico of breach of its financing agreement and issued a notice of default alleging final valuation material sent to creditors failed to meet DIP credit agreement.

https://www.sentidocomun.com.mx/breves.phtml?id=101358
 
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LAXintl
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Re: Updated: Aeroméxico files for Chapter 11

Tue Nov 30, 2021 4:35 pm

Aeromexico filed an amendment to its restructuring plan as proposed by Apollo and other creditors that require $1.4bil in exit financing.
Both Apollo and Delta would obtain sizable stakes in the new company with seats on the board.

https://www.prnewswire.com/news-release ... 33856.html
 
rbavfan
Posts: 3901
Joined: Fri Apr 17, 2015 5:53 am

Re: Updated: Aeroméxico files for Chapter 11

Tue Nov 30, 2021 5:39 pm

hiflyeras wrote:
Not sure how Mexican labor law works but in the US this would lead to the company imposing their own 'contract' or set of work rules. Staff could either work under those rules or choose a work stoppage. Negotiations would continue with the labor leaders and hopefully an agreement would be made to return everyone to work but the power here is in the hands of the company. In the current environment I think many would opt to cross a picket line and go back to work...they haven't had a paycheck for how many months?


There comes a point where you can strike and the effect is they liquadate instead of continuing and you get no paycheck and are fully out of work.

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