Mexico’s Interjet eyes deal with creditors within a year By Reuters

© Reuters. FILE PHOTO: Interjet Airbus A320 aircraft are seen on the tarmac at Benito Juarez international airport in Mexico City, Mexico, February 15, 2019. REUTERS/Daniel Becerril

By Sharay Angulo

MEXICO CITY (Reuters) – Mexican airline Interjet hopes to strike a deal with creditors within a year so it can re-start operations after it shut down during the coronavirus pandemic in December, the firm representing it in the debt talks said.

Shareholders of the carrier owned by ABC Aerolineas reached an agreement in April for Interjet to seek commercial bankruptcy to allow it to restructure $1.25 billion in liabilities. Interjet had also been struggling before the pandemic.

Argoss Partners, the firm tapped to negotiate with Interjet’s creditors, told Reuters in an interview on Thursday that a judge was expected to start the bankruptcy process soon.

Carlos Ortiz-Cañavate, a partner at Argoss, said Mexican law requires a deal to be met with creditors within a year.

“At maximum, it’s 365 days. The sooner we can fly again, the better,” he said, without giving a more specific date.

Interjet’s spokesman, Carlos del Valle, said it was too early to say when the firm might restart operations.

Igor Marzo, another Argoss partner, said Mexico’s tax authority is Interjet’s biggest creditor. He declined to state the amount owed, and said employees would have priority on collecting back pay.

The airline’s union, made up of more than 5,000 people, went on strike in January demanding back wages.

Marzo said Interjet is talking with potential investors who could help the airline pay down its debt, but declined to name the potential funders.

“To keep negotiating you need an inflow of capital,” he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*