Aeroméxico announces voluntary financial restructuring process

Aeroméxico announced on Tuesday that the company and some of its subsidiaries began a voluntary financial restructuring process in accord...

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  • Aeroméxico announced on Tuesday that the company and some of its subsidiaries began a voluntary financial restructuring process in accordance with the United States Bankruptcy Law.
  • The coronavirus pandemic significantly decreased passenger demand worldwide and ended up affecting the airline’s finances
  • The company explained that during the bankruptcy process they will continue to operate normally

 

Aeroméxico, the main Mexican airline, announced on Tuesday that the company and some of its subsidiaries began a voluntary financial restructuring process under Chapter 11 of the United States Bankruptcy Law in the face of the crisis caused by the pandemic of the COVID-19.

In a statement, the company indicated that the financial restructuring will take place while it continues to operate normally.

“The company will use the advantages of Chapter 11 to strengthen its financial position and liquidity, protect and preserve its operations and assets, and implement the necessary operational adjustments to face the impact of COVID-19,” commented the CEO of Aeroméxico, Andres Conesa, in a statement published by the Mexican stock exchange (BMV).

“Our industry faces unprecedented challenges derived from a significant reduction in passenger demand globally, so we are committed to adopting the necessary measures to operate continuously and efficiently in this new reality, and thus be better prepared to a successful future during and after the pandemic ”, added Conesa

The company explained that its operations will continue in progress and in compliance with its permits and concessions and announced that for the month of July, it will increase its presence in the domestic market “to almost double the number of flights compared to the previous month.”

In addition, he estimated that it will increase its international operation “to almost four times more” compared to the month of June and said that it is committed to growing its operation safely in the coming months.

Photo: Twitter Aeromexico

He also reported that he is in talks “to obtain new, preferential financing for the company, as part of the restructuring” within the procedure under Chapter 11 which serves for a company to restructure without going into immediate liquidation and having to resort to dismissal of staff.

Aeroméxico announces voluntary financial restructuring process

During the day today, just after the announcement, the shares of Grupo Aeroméxico fell 54.03% on the BMV, reported Forbes.

Despite the ‘hard blow’, according to the US Securities Market Commission, the company that avails itself of the process can continue its operations and reorganize its structure while negotiating a payment plan with its creditors.

The company reported that tickets, reservations, electronic vouchers and premier points remain valid, according to current terms and conditions.

A few days ago, the airline indicated that it plans to close the month of July having exceeded 6,000 flights and confirmed that as the restrictions that are in force in different countries are eliminated, more destinations may be restored.

Aeromexico reiterated that protocols are applied to protect the health of its customers and collaborators on all its flights. that were developed through its health and hygiene management system.

Mexico surpassed 220,000 confirmed cases and 27,700 deaths from COVID-19 on Tuesday, after reporting 5,432 new infections and 648 deaths in its report in the last 24 hours.

Chuck E Cheese Pizza Chain Files for Bankruptcy

The coronavirus crisis takes a new victim and it is that the Chuck E Cheese pizza chain declares bankruptcy.

This Thursday, it was known that Chuck E Cheese filed Chapter 11 with which they request bankruptcy protection.

The pandemic was a severe blow to the company, which has had to keep its doors closed for about three months and has seen its revenues decline.

Even with the flexibility of the measures in various cities in the United States, CEC Entertainment Inc. has only been able to open 266 of its 555 stores, reported AJC.

It is also not clear if the outlook would improve if all the stores could open, because many parents would look with suspicion to bring or have a party for their children in these spaces.

David McKillips, CEO of the company, said: “The Chapter 11 process will allow us to strengthen our financial structure as we recover from what has undoubtedly been the most challenging event in the history of our company.”

Chuck E Cheese filed his bankruptcy with the United States Bankruptcy Court in Texas.

In it, the company indicates that its debt reaches $ 2 billion dollars and included in the document $ 1.7 billion dollars in assets.

Filed As: Aeroméxico announces voluntary financial restructuring process – bankruptcy

Chuck E. Cheese Pizza Chain Files for Bankruptcy

Chuck E Cheese draws the attention of children not only for its food but also for its fun game room, in a business model that is based on customer traffic.

However, the 43-year-old chain that operates Chuck E Cheese and Peter Piper Pizza has had to fight the coronavirus on the economy.

The company indicated that as local measures on Covid-19 expand, they will continue to open locations.

They are even working on the option of offering delivery and pick-up of their meals, an avenue for which they were not prepared when the pandemic began.

All of this while the bankruptcy process continues and the terms for your recovery are set.

Even though Chuck E Cheese and its franchisees have 734 restaurants globally, the company noted that local franchisees are not in their bankruptcy filing.

Filed As: Aeroméxico announces voluntary financial restructuring process – bankruptcy

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