Apollo Global Management Inc. won court approval to provide a $1 billion bankruptcy loan for Grupo Aeromexico SAB, paving the way for the airline to proceed with its restructuring plans, Bloomberg News reported. The decision resolves a clash between Apollo and a group of bondholders while bolstering Aeromexico’s efforts to weather an unprecedented collapse in air travel. The disagreement had prompted a bankruptcy court in New York to delay a key hearing on the debtor-in-possession financing four times. Under the new pact, the minority lenders will be able to decide whether they want to convert their loans into equity, Timothy Graulich, a lawyer for Aeromexico, said Friday at the hearing. As the majority lender, Apollo will also be able to convert. Aeromexico, which unlike U.S. airlines hasn’t received government aid to help it through the coronavirus pandemic, filed for court protection three months ago as demand for flights tumbled. The airline’s passenger totals are still less than half their year-ago levels, with customers on lucrative international flights down 84 percent last month.
