AeroMexico Files For Chapter 11 Bankruptcy, Will Continue Flying

AeroMexico has today announced that it will be filing for voluntary Chapter 11 bankruptcy in the United States. AeroMexico will continue flying and all existing tickets, reservations, electronic vouchers and premier points will remain valid. AeroMexico joins Avianca & LATAM in filing for chapter 11 bankruptcy.

Chapter 11 bankruptcies happen infrequently, but they are also a relatively common occurrence when it comes to airlines during difficult periods. We’ve previously looked at what happens to points & miles during chapter 11 bankruptcy.

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11 Comments
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Dom
Dom (@guest_1007360)
June 30, 2020 22:20

Legal question: Why is a Mexican company filing in the US?

Jake
Jake (@guest_1007378)
June 30, 2020 22:30

It maybe was incorporated in US.

david
david (@guest_1007390)
June 30, 2020 22:37

Foreign international companies like seeking bankruptcy protection in the US because our bankruptcy laws make it easier to restructure debt obligations compared to other foreign jurisdictions. You just need to show you have assets/operations in the US to be eligible for protection.

debit
debit (@guest_1007472)
July 1, 2020 00:17

But is it only for the u.s. domiciled assets?

Has to be.

david
david (@guest_1007521)
July 1, 2020 01:23

Nope, you can literally have some nominal amount of assets in the US and the protections have a global effect. Check out the TMT Shipping case to learn more about how foreign corps take advantage of our bankruptcy code. IIRC their only tie to the US was an office in Houston which they opened a few days before filing for protection.

Dom
Dom (@guest_1007588)
July 1, 2020 06:36

Wow. I learned something new today! Thank you

Creditian
Creditian (@guest_1007536)
July 1, 2020 02:01

Because Grupo Aeroméxico is a subsidiary of Delta Air Lines who holds 49% stock shares.

ailee lee
ailee lee (@guest_1007848)
July 1, 2020 13:24

same happend with LATAM

Ryan
Ryan (@guest_1007352)
June 30, 2020 22:06

Not a lot of sympathy for them… they let us check our baby car seat for free on the outbound, refused to do so on the inbound because “only strollers”.

Kevin Smith
Kevin Smith (@guest_1007415)
June 30, 2020 23:09

what a terrible company.

ailee lee
ailee lee (@guest_1007852)
July 1, 2020 13:26

i flew to South Korea last year and it was a good trip and service.