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.
9-Nov-2010 12:54 PM