Apollo Approved for $1 Billion Aeromexico Bankruptcy Loan (1)

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.

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, ...