Mexicana airline declared bankrupt

News about this airline - please include a link to the source as well as the article text itself.
User avatar
Forum Administrator
Forum Administrator
Posts: 32081
Joined: Fri May 12, 2006

Mexicana airline declared bankrupt

Unread post by bimjim » Fri Apr 04, 2014 ... d-bankrupt

Mexicana airline declared bankrupt
4 Apr 2014


A Mexican judge has declared Mexicana de Aviacion, one of Latin America's oldest airlines, bankrupt and ordered the sale of the debt-ridden company's assets.

The company, founded in 1921, had suspended its operations in August 2010 and was under a form of bankruptcy protection allowing the company to negotiate with creditors and make restructuring plans.

Investors expressed interest in the company but a financial rescue never materialised despite extensions given by the court to provide the company more time to find a solution.

A district judge on Friday declared the company "in a state of bankruptcy" and ordered the sale of "rights and assets" to pay back lenders, the Federal Judicial Council said in a statement.

Two subsidiaries, Click and Link, were also declared bankrupt.

When it suspended operations, Mexicana had $US786 million ($A854 million) in assets and debts totalling $US864 million.

The airline used to fly to 22 countries, carrying 22,000 passengers per day.

Post Reply

Return to “Mexicana”