Creditors Claim Aeromexico Plan Hands $268M To Insiders – Law360

[ad_1]

By Rick Archer (December 3, 2021, 8:37 PM EST) — Grupo Aeromexico’s unsecured creditors committee has told a New York bankruptcy judge it will oppose the airline’s proposed Chapter 11 plan, saying it gifts corporate insiders with nearly $268 million in equity while shorting other creditors.

In a motion filed Thursday, the committee asked the court to amend Grupo Aeromexico SAB de CV’s Chapter 11 plan disclosure statement to include an explanation of why the unsecured creditors believe the proposed plan should be rejected for undervaluing the company and unfairly providing certain shareholders with equity over and above the value of their investments.

“In sum, the committee believes that the plan…

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS