Earlier this year, Mexican airline, Grupo Aeromexico, S.A.B. de C.V. (together with its affiliates, the “Debtors”) announced that their creditor body had overwhelmingly voted to approve their proposed Chapter 11 restructuring plan (the “Plan”) save for one class of unsecured creditor claims that voted to reject the Plan. Those claims were held by Invictus Global Management, LLC (“Invictus”), a distressed investment fund that recently purchased the claims subject to a “plan support provision” which purportedly compelled the claimholder to support the Debtors’ Plan. Invictus nonetheless voted against the Plan which threatened to hold-up confirmation and force an expensive trial relating to whether the Debtors are able to satisfy the “cram-down” provisions of the Bankruptcy Code.[1]
Continue Reading Plan Support Covenants Survive Attack in Aeromexico’s Bankruptcy Proceeding