| | |  Travel & Outdoors 
Mexicana Bankruptcy Filing Accepted by Mexico Judge After Planes Grounded
 Jonathan J. Levin & Crayton Harrison - Bloomberg
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September 08, 2010
A Mexico judge declared Cia. Mexicana de Aviacion to be in bankruptcy, a week after the country’s largest airline by passengers indefinitely grounded all flights.
An administrator will be named by tomorrow, Communications and Transportation Minister Juan Francisco Molinar told reporters today in Mexico City. Judge Felipe V. Consuelo Soto in Mexico City is presiding over the case, according to court documents posted on the country’s judicial branch website.
Cia. Mexicana de Aviacion filed on Aug. 3 for protection from creditors in Mexico and under Chapter 15 of the U.S. Bankruptcy Code. The carrier parked all planes on Aug. 28, including those for low-fare subsidiaries MexicanaLink and MexicanaClick.
A Mexicana spokesman, Adolfo Crespo, didn’t immediately return calls requesting comment.
The Communications and Transportation Ministry will serve as the arbitrator between the airline and its creditors, Molinar said.
The carrier operated 69 planes under the Mexicana brand and 35 aircraft under MexicanaClick, which it started in 2005. MexicanaLink, a separate unit unveiled last year, has 15 planes, according to the company’s website. Mexicana has 165 sales locations.
The Chapter 15 petition, which bars U.S. creditors from seizing planes or canceling contracts, lists more than $500 million in assets and $1 billion in debt.
To contact the reporters responsible for this story: Jonathan Levin in Mexico City at jlevin20(at)bloomberg.net; Crayton Harrison in Mexico City at tharrison5(at)bloomberg.net. |
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