Aeromexico lines up $1 billion DIP loan from Apollo Global Management

FILE PHOTO: The logo of the aerial company Aeromexico is seen at the Aeromexico counter at Benito Juarez international airport in Mexico City, Mexico, July 1, 2020. REUTERS/Edgard Garrido

MEXICO CITY (Reuters) - Mexican carrier Aeromexico AEROMEX.MX, which filed for Chapter 11 bankruptcy protection in the United States at the end of June, said on Thursday it has lined up $1 billion in debtor-in-possession financing with Apollo Global Management Inc.

“Today we obtained, subject to court approval, commitments for a $1.0 billion senior secured superpriority multi-tranche debtor in possession term loan facility, the DIP Facility, with funds managed by affiliates of Apollo Global Management Inc.,” Aeromexico said in a statement.

The DIP facility consists of two tranches and can only be used for certain expenses, including working capital expenses, general corporate purposes and restructuring costs.

“This is a critical milestone in the ongoing process to transform our company with the goal of driving long-term, sustainable growth for Aeromexico,” said Aeromexico Chief Executive Andres Conesa.

The DIP Facility, still subject to bankruptcy court approval and other agreements, will provide Aeromexico with liquidity to meet its future obligations in a timely and orderly fashion, and to continue with operations during and after the restructuring process, the firm said.

Reporting by Noe Torres; Writing by Anthony Esposito; Editing by Chris Reese and Stephen Coates