MEXICO CITY, Jan 27 (Reuters) – Grupo Aeromexico on Thursday reached a deal with a group of unsecured creditors to withdraw their objection to the airline’s restructuring plan, its lead counsel said during a bankrutpcy court hearing.
Aeromexico AEROMEX.MX offered the unsecured creditors potential distributions from a four-year, $40-million “contingent value right” note in which the creditors would be able to receive cash distributions as long as Aeromexico outperforms its targets, counsel Timothy Gaulich of Davis Polk & Wardwell said.
“I think it is a very good outcome for these estates. It will drive additional recoveries for unsecured creditors, and will, I believe, significantly narrow the issues to be litigated as part of confirmation,” Gaulich said.
(Reporting by Maria Chutchian; Editing by Christian Plumb)
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