Mexican carrier Aeromexico said on Monday that its shareholders have approved a capital increase as part of its restructuring plan to emerge from bankruptcy, Reuters reported. In two meetings held on Friday, shareholders agreed to hike the share capital by $4.267 billion, which is subject to a third party making a public tender offer of its current shares. The increase will come from the issuance of some 682 trillion common shares, which will be paid for through a $3.44 billion debt capitalization and an $828 million injection. Aeromexico's biggest creditor in its U.S. chapter 11 case, Apollo Global Management, will swap its debt into equity as part of the reorganization, becoming the airline's largest stakeholder. Delta Air Lines Inc, which had controlled a majority of Aeromexico before the bankruptcy, will hold roughly a fifth of its stock coming out of bankruptcy. Aeromexico has 682.1 million shares in circulation. Existing equity shareholders will see their stakes essentially wiped out. Aeromexico also said shareholders had agreed to issue another 68.2 trillion shares, which will remain in the company's treasury.
