Financially distressed Aeromexico gets $50 million lifeline

Aeromexico, which is in the process of analyzing its options for restructuring its short- and medium-term financial commitments, was thrown a $50m financial lifeline on Monday by investment holding company Aimia. Aeromexico’s shares tanked earlier in June after a newspaper column said it was considering filing for bankruptcy, though the airline later clarified it had not decided whether to seek Chapter 11 protections in the US. Aeromexico and Aimia said in separate statements they inked a definitive agreement to amend a shareholders agreement between them and a commercial agreement between Aeromexico and PLM Premier, the operator of the Club Premier loyalty program. PLM made an initial $50m loan to Aeromexico under an existing intercompany loan facility after the signing of a letter of intent between Aimia and Aeromexico announced on May 12. “An additional $50m advance to Aeromexico by PLM through pre-purchases of award tickets was provided with the execution of the amendments to the commercial agreement. This financial support totals $100m and is secured by Aeromexico’s stake in PLM,” the firms said. Aeromexico and Aimia said they will explore options to leverage PLM’s debt-free balance sheet and cash flows to provide additional resources to shareholders, including a potential leveraged recapitalization of PLM’s balance sheet.<br/>