Aeromexico becomes latest LatAm airline to file for bankruptcy

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MEXICO CITY (Reuters) – Mexican airline Aeromexico said on Tuesday it had begun restructuring under Chapter 11 proceedings, the latest Latin American airline to run into serious trouble as the coronavirus pandemic wreaks havoc on tourism and business travel.

In a statement, Aeromexico categorized the Chapter 11 process as “voluntary” and said it was sticking to its goals of boosting operations in the coming weeks.

Aeromexico said it was maintaining its plan of quadrupling its international flights and doubling domestic flights next month as the coronavirus lockdown eases.

Tickets, reservations, electronic vouchers and Premier Points remain valid, the airline said.

Aeromexico said it was in talks to obtain new, preferential financing as part of the Chapter 11 restructuring, so-called debtor-in-possession financing.

Investment holding company Aimia Inc (TO:AIM) threw Aeromexico a $50 million financial lifeline on Monday, after loaning it another $50 million in May.