Mexicana received approval from US Bankruptcy Judge Martin Glenn for its request for protection under Chapter 15 of the US bankruptcy code (Business Week, 09-Nov-2010). The ruling will help the carrier to reorganise its main bankruptcy in Mexico by giving it a legal shield from US creditors. The carrier filed for protection from creditors in Mexico in Aug-2010, and also sought protection under Chapter 15 in New York. A group of investors, Tendora K, bought 95% of the company on 20-Aug-2010, and are seeking to turn it around after disputes with labour unions and a rise in jet fuel prices drove the company to bankruptcy. Mexicana’s Chapter 15 petition in New York listed more than USD500 million in assets and USD1 billion in debt.
Mexicana’s parent receives creditor protection from US judge
9-Nov-2010 12:54 PM