The plan for Mexicana to restart at least some operations has 'sputtered to a halt' as PC Capital (described as a 'tiny boutique investment firm') which was chosen by a judge-appointed mediator in November as the best option to bring Mexicana back to life, has failed to attract investors!
Whilst the Unions finally accepted the reality that there would be massive Job Cuts if the Airline was to be restarted, potential investors have been unable to raise sufficient funds, in part due to severance pay costs and Union demands on Salaries. But these form only element of the estimated $8000 Million USD Debt restructuring that would be required to relaunch (a sum which daily increases). The result Mexicana once more slips back into the Darkness of a Company in the limbo between bankrupt and liquidated. Every day that passes means that Mexicana's hopes of a relaunch lessen, if this was the last attempt to get Mexicana flying again it would be a sad end for one of the oldest and often one of the most innovative carriers in Latin America.
See: Mexicana unsuccessfully tries to relaunch from Reuters
The previous posts in the Blog on Mexicana
05th August 2010 - Will Mexicana Survive?
25th August 2010 - Bringing Mexicana Back from the Brink - Step 1
31st August 2010 - Mexicana - Two Steps back and Teetering
12 November 2010 -A Brief Update on Mexicana
13 December 2010: - Another Brief Update on Mexicana
Whilst the Unions finally accepted the reality that there would be massive Job Cuts if the Airline was to be restarted, potential investors have been unable to raise sufficient funds, in part due to severance pay costs and Union demands on Salaries. But these form only element of the estimated $8000 Million USD Debt restructuring that would be required to relaunch (a sum which daily increases). The result Mexicana once more slips back into the Darkness of a Company in the limbo between bankrupt and liquidated. Every day that passes means that Mexicana's hopes of a relaunch lessen, if this was the last attempt to get Mexicana flying again it would be a sad end for one of the oldest and often one of the most innovative carriers in Latin America.
See: Mexicana unsuccessfully tries to relaunch from Reuters
The previous posts in the Blog on Mexicana
05th August 2010 - Will Mexicana Survive?
25th August 2010 - Bringing Mexicana Back from the Brink - Step 1
31st August 2010 - Mexicana - Two Steps back and Teetering
12 November 2010 -A Brief Update on Mexicana
13 December 2010: - Another Brief Update on Mexicana
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