translated from Spanish: Aeromexico files ubankruptcy in US for COVID-19 pandemic

Aeromexico, Mexico’s largest airline and one of the largest in Latin America, reported on Tuesday that it took over the U.S. bankruptcy law to restructure its debt due to the “unprecedented impact” of the COVID-19 pandemic on its sector.
“We have initiated a voluntary procedure to implement a financial restructuring under the Chapter 11 process in the United States of America. This legal process will not disrupt the airline’s operations,” the company said in a statement.
“We are committed to taking the necessary steps to secure our future by voluntarily entering the Chapter 11 process to be stronger and more resilient,” said the company’s CEO, Andrés Conesa, quoted in the statement.
Read: When and how airlines will fly back in the world and in Latin America
On June 19, Aeromexico informed the Mexican Stock Exchange that it had not taken the U.S. bankruptcy law and had not decided to do so.
Chapter 11 is a legal process that allows companies to restructure themselves financially and operationally under the supervision of a U.S. court, protecting them from the risk of creditor claims while continuing to operate.
Aeromexico is the third largest airline in Latin America to resort to the bankruptcy law after LATAM and Avianca, the two largest on the continent, did the same last month hit by the paralysis of commercial aviation generated by the new coronavirus.
As of the end of May, the number of flights across the region had plummeted by 93% resulting in an estimated loss of $18 billion, according to figures from the International Air Transport Association (IATA).
Find out: Coronavirus: the economic impact on airlines (and how it can affect ticket prices)
The Mexican company argued that many of the world’s leading airlines have already opted for controlled bankruptcy under U.S. laws as a way to strengthen their finances and continue to operate.
“That’s what we intend to do and, the ability to continue serving our customers without any interruption, is why we made this important decision,” Aeromexico added in the statement.
The company said tickets, reservations, electronic vouchers and its points system will remain valid and will be available for use.
In early June, Aeromexico resumed some of its national and international routes after several weeks of suspension.
IATA estimates that it will take up to three years for Latin American airlines to recover the flight and passenger levels they had before the COVID-19 crisis.
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Original source in Spanish