Aeromexico shares plummeted on the Mexican stock exchange

239

Shares in Mexican carrier Aeromexico plummeted on the Mexican stock exchange on Thursday, December 16th, after the firm announced a tender offer for its shares at a massively reduced price as part of its financial restructuring.

Aeromexico shares plunged 70 percent at one point but had partially recovered by midday. They were still down 52 percent to 1.79 pesos, having closed on Wednesday at 3.89 pesos.

Earlier in the day, the company announced it would tender 46 percent of its shares in circulation at the paltry price of 0.01 peso each.

Aeromexico, one of Latin America’s largest airlines, filed for Chapter 11 bankruptcy in the United States last year, citing the “unprecedented impact” of the coronavirus pandemic.

The company said the move would allow it to obtain new capital.

“These measures are conducive to the company’s voluntary restructuring process under Chapter 11,” said Aeromexico in a statement.

Part-owner Delta Airlines, the US carrier, is not part of the tender.

Analysts from financial services company Monex said the share price would experience “a major period of volatility during the next sessions until the tender is concluded and the agreements for the restructuring plan have been established.”

Source: El Financiero

Mexico Daily Post