Apollo Global Management Inc. is clashing with a group of bondholders over a $1 billion bankruptcy loan to Grupo Aeromexico SAB, holding up the Mexican airline’s restructuring effort, Bloomberg News reported. The disagreement stems from debate over how much power Apollo will have to make key decisions. The bondholder group, which took part in the first $200 million tranche of the debtor-in-possession financing led by Apollo, is trying to hold on to bargaining power, the people said. The two sides have diverging opinions about what they initially agreed to. The impasse is crimping progress in Aeromexico’s chapter 11 protection as the carrier seeks to weather an unprecedented collapse in air travel. The Mexico City-based company, which unlike U.S. airlines hasn’t received government aid, filed for court protection three months ago as the coronavirus pandemic devastated demand for flights.
