Aeromexico said on Tuesday that a majority of its shareholders approved a proposal to exit the main Mexican stock exchange. This is as a part of the airline’s bankruptcy restructuring. Shareholders on Monday approved a plan to cancel the registration of shares and their listing on the stock exchange. In order to start a buy-back program, the company said in a statement.
Aeromexico, which filed for bankruptcy in June 2020 after the coronavirus pandemic slashed travel demand. This emerged from bankruptcy protection in March with a $5 billion investment plan and changes to its fleet. Delta Airlines (DAL.N), which held a 49% stake in Aeromexico before Chapter 11 bankruptcy proceedings, ended with a 20% share. Private equity firm Apollo Global Management (APO.N) became the company’s largest shareholder following Chapter 11.
“Aeromexico used its status as a Chapter 11 debtor to negotiate,” said Katie Coleman, co-chair of law firm Hughes Hubbard & Reed’s corporate reorganisation and bankruptcy practice, which served as lead counsel to Delta Airlines in the case.
Of the around 150 companies listed on Mexico’s main stock exchange, seven, such as dairy producer Grupo Lala, telecommunications firm Maxcom and paper producer Bio Pappel, have recently delisted or announced plans to do so.
-Reuters.