Saturday, April 5, 2014

México: Mexicana de Aviación in a "State of Bankruptcy"

According to The Latin American Tribune, Mexican airline Mexicana de Aviación, which suspended its operations in August 2010 and had been seeking an investor to get it back in the skies, was declared in a “state of bankruptcy” on Friday (April 4), the Federal Judicial Council (CJF) said.

The bankruptcy ruling by a Mexico City-based district judge also affects the airline’s subsidiaries, budget airlines Click and Link, and its maintenance plant, one of the largest in the Americas, according to the CJF.

COMMENT: The decision brings an end to a 3.5 year attempt to find an investor to rescue the carrier, which was founded in 1921, had 8,000 employees and restructure its debt load of more than $800 million.

It also means the federal Communications Secretariat must now name an administrator to sell off the company’s assets to repay creditors.