Aeromexico unsecured creditors concerned about aircraft lease agreements

By Sarah Lizee

Olympia, Wash., Aug. 9 – Grupo Aeromexico, SAB de CV’s official committee of unsecured creditors objected Saturday to the company’s motion to enter into new aircraft lease agreements with affiliates of Dubai Aerospace Enterprise Ltd. (DAE), according to a filing with the U.S. Court for the Southern District of New York.

The motion seeks to implement a change to the debtors’ fleet plan, whereby the debtors would enter into long-term lease agreements with 24 additional Boeing 737MAX aircraft, including 12 that are the subject of the lease the debtors seek to enter under the motion.

After filing the motion, the committee asked the debtors to provide an analysis showing the incremental impact of each line of flying for the 737MAX aircraft, particularly those under the DAE leases, on the future profitability of the debtors’ business.

The committee said the analysis is crucial to allowing the committee and the debtors’ potential exit financing investors to evaluate the impact of the proposed acquisitions on the debtors’ long-term profitability and the optimal fleet size and composition for the debtors.

The committee said it was not until three days before filing the objection that the company responded to its request.

“A preliminary review of the debtors’ response indicates that it leaves key questions unanswered, and the committee’s financial advisers will need further time to work with the debtors to fully answer those questions,” the committee said.

The committee added that the motion should be adjourned to ensure that potential exit financing investors property evaluate the aircraft in connection with the total enterprise value reflected in their exit financing proposals.

Grupo Aeromexico, a holding company for commercial aviation, is based in Mexico City. The company filed Chapter 11 on June 30, 2020 in the U.S. Bankruptcy Court for the Southern District of New York under case number 20-11563.

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