Invictus Global Management and Corvid Peak Capital Management Send Letter to Delta Airlines and Apollo Global Management Regarding the Need for Constructive Leadership in Aeroméxico's Restructuring  

Invictus Global Management, LLC and Corvid Peak Capital Management, sizable creditors in the bankruptcy of Grupo Aeroméxico, S.A.B. de C.V., today sent the below letter to the boards of directors of Delta Air Lines, Inc. and Apollo Global Management, Inc. regarding the ongoing restructuring process.

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November 30, 2021

Delta Air Lines, Inc.
Department 981, P.O. Box 20574
Atlanta, Georgia, 30320
Attn: The Board of Directors

Apollo Global Management, Inc.
9 West 57th Street, 43rd Floor
New York, New York 10019
Attn: The Board of Directors

To whom it may concern:

Invictus Global Management, LLC (collectively with its affiliates, "Invictus") and Corvid Peak Capital Management ("Corvid" and collectively with Invictus, "we") are minority and woman-owned investment firms founded by restructuring and distressed investing veterans. We have successfully participated in many of the largest bankruptcies in U.S. history. We focus on maximizing value in restructurings and similar special situations by providing equitable capital solutions and advocating for corporate governance practices that benefit all stakeholders. We are currently sizable holders of general unsecured claims of various debtor entities (collectively, the "Debtors" or "Aeromexico") in the bankruptcy cases of In re Grupo Aeroméxico, S.A.B. de C.V., et al. (Jointly Administered Case No. 20-11563), which are pending in the Bankruptcy Court for the Southern District of New York. In addition to being significant creditors, Invictus and Corvid were commitment parties for each of the exit financing proposals previously submitted to the Debtors. We have been working tirelessly to build consensus around a fair and viable exit plan for the benefit of the Debtors and stakeholders like you.

Delta Air Lines, Inc ("Delta") and Apollo Global Management, Inc. (collectively with its affiliates, "Apollo") are the largest stakeholders in the Aeromexico restructuring. Delta is Aeromexico's largest equity holder today at almost 50% and Ed Bastian, its Chief Executive Officer, sits on Aeromexico's Board of Directors. Apollo provided the $1 billion debtor-in-possession financing (of which the $800 million tranche provides Apollo with significant case control through its unprecedented equity conversion option). Thanks to the unique exit financing terms you have collectively aligned on, you are both positioned to receive exceptional recoveries and retain substantial equity in the reorganized company. You also stand to receive representation on the Board of Directors of the reorganized Debtors and maintain continued influence. We are asking that your interests and influence in these cases now be applied to ensuring that there is a fair and consensual path forward for all stakeholders ? rather than one marred by conflicts of interest and opacity.

You should know these cases are now nearing a pivotal crossroads, where your collective leadership is critical to preserving a fair and consensual deal. This restructuring could be on the verge of devolving into protracted litigation because value is not currently being distributed in a lawful manner consistent with decades of well-established bankruptcy precedent. In particular, we believe the value going to unimpaired claimants and third-party investors is excessive and undermines a consensual exit.

On November 21, 2021, we (along with other fulcrum claims holders) presented your organizations with a compelling exit financing proposal that provides Delta and Apollo with identical or improved treatment, while ensuring a consensual framework for a near-term emergence by affording fulcrum (and severely impaired) general unsecured creditors meaningful participation and reasonable recoveries in the reorganized company. Our proposal re-allocates disproportionate value going to unimpaired claimants, such as Silver Point Capital, and other third-party investors without any claims, such as The Baupost Group and Oaktree Capital Management, to the fulcrum operating company creditors in accordance with bankruptcy precedent. Our proposal does not seek any special treatment for general unsecured creditors. To the contrary, we simply want decades of precedent to be respected and for reasonable recoveries to be obtained by fulcrum operating company creditors. We believe your leadership can help facilitate this type of outcome and mitigate costly, distracting and unnecessary litigation.

To that end, we hope you will collaborate with us on a solution and welcome the opportunity to work with you on a plan that will maximize value for all key stakeholders and set Aeromexico up for a successful reorganization. We look forward to hearing from you.

Sincerely,

Cindy Chen Delano
Co-Founder and Partner
Invictus Global Management, LLC

Mark Black
Founder and Chief Investment Officer
Corvid Peak Capital Management