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.
Legal question: Why is a Mexican company filing in the US?
It maybe was incorporated in US.
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.
But is it only for the u.s. domiciled assets?
Has to be.
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.
Wow. I learned something new today! Thank you
Because Grupo Aeroméxico is a subsidiary of Delta Air Lines who holds 49% stock shares.
same happend with LATAM
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”.
what a terrible company.
i flew to South Korea last year and it was a good trip and service.