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Latino Daily News

Saturday April 5, 2014

Judge Declares Mexican Airline Bankrupt, Orders Sale of Assets

Judge Declares Mexican Airline Bankrupt, Orders Sale of Assets

Photo: Mexicana de Aviacion

Click Here to Enlarge Photo

Mexican airline Mexicana de Aviacion, which suspended its operations in August 2010 and had been seeking a investor to get it back in the skies, was declared in a “state of bankruptcy” on Friday, the Federal Judicial Council, or CJF, said.

The bankruptcy ruling by a Mexico City-based district judge also affects the airline’s subsidiaries, budget airlines Click and Link, and its maintenance plant, one of the largest in the Americas, according to the CJF.

The decision brings an end to a three-and-a-half year attempt to find an investor to rescue the carrier, which was founded in 1921 and had 8,000 employees, and restructure its debt load of more than $800 million.

It also means the federal Communications Secretariat must now name an administrator to sell off the company’s assets to repay creditors.

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