Advent fund might invest in Mexicana air – reports

MEXICO CITY, Aug 18 (BestGrowthStock) – Investment fund Advent
International could invest some $49 million into Mexico’s
Mexicana de Aviacion to keep the airline flying, local media
and a union said on Wednesday.

Pilots from Mexicana de Aviacion reached a preliminary deal
this week that calls for wage cuts and staff reduction in a
desperate bid to keep the 89-year-old airline operating,
according to local media.

Mexicana has halted more than a dozen international routes
and stopped selling tickets after requesting creditor
protection two weeks ago under Mexico’s insolvency law, called
concurso mercantil.

The airline has also requested creditor protection in the
United States, but has yet to be declared bankrupt in Mexico.

Reforma newspaper said the cash Advent International would
invest in Mexicana would depend on government willingness to
temporarily supply free fuel and allow a deferral on payments
due for using the country’s airspace.

The potential investment is about half of what the
airline’s management says is needed to keep it operating.

Lizette Clavel, head of the flight attendants union, told
Radio Formula that other financial institutions would be
welcomed into the talks, but so far Advent is the only one that
has committed cash.

“This is a first step, by showing there are serious
investors looking at the airline,” she said. Her union is
expected to meet on Wednesday with Advent representatives in
Mexico City to evaluate what they can bring to the negotiation
table.

Advent and Mexicana declined to comment on the reports.

Goldman Sachs Group Inc (GS.N: ) and Credit Suisse Group AG
(CSGN.VX: ) were also mentioned earlier this week by media as
potential investors.

Mexicana is one of two top airlines in the country and a
major carrier bringing tourists to Mexico’s famed beach
resorts. It has a debt of around 10 billion pesos ($800
million).

The company’s pilots have been flying with no pay for about
two weeks.
(Reporting by Cyntia Barrera Diaz, editing by Gerald E.
McCormick)

Advent fund might invest in Mexicana air – reports