Aeromexico Plunges 52 Percent In The Stock Market After Announcing Its Restructuring.

In early December, the company obtained court permission to send its restructuring plan to creditors for a vote. Aeromexico's shares on the Mexican Stock Exchange plummeted 52 percent at the close of trading on Thursday, after it announced in the morning that a firm unrelated to the issuer is in the process of conducting a takeover bid. Aeromexico's security holders will be offered one cent per share before the company emerges from Chapter 11 restructuring proceedings under the U.S. Bankruptcy Law. The company said in a statement that the unidentified third party will initiate a voluntary tender offer to give existing shareholders the option to withdraw from equity before new contributions to pay for the Chapter 11 exit "substantially dilute existing shares." The company behind the offer will begin proceedings to obtain approval from regulators in Mexico.

 The airline's largest shareholder, Delta Air Lines, will not participate in the offer. That means up to 49 percent of the shares could be acquired prior to dissolution, which will represent less than 0.01 percent of the total shares once the restructuring plan goes into effect, according to the statement. The offer will be paid for with funds from the bidder, in coordination with Aeromexico. Earlier this month, the airline obtained court permission to send its restructuring plan to creditors for a vote, a key step before seeking final court approval to exit bankruptcy. The confirmation hearing is set for January 18. Once the airline emerges from bankruptcy protection, a group of strategic Mexican shareholders will own 4.1 percent of the company. Apollo Global Management, which led the debtor-in-possession financing, will hold a 22.38 percent stake, while Delta will hold 20 percent. The remaining shares will be distributed among new investors and creditors.