Argentina’s Andes Líneas Aéreas has exited its preventive bankruptcy process following a court-homologated agreement with creditors. The Juzgado Nacional de Primera Instancia en lo Comercial N° 28 approved the deal, published in the Boletín Oficial on May 4, ending proceedings that began in 2023.
The restructuring addresses debts exceeding 6,631 million Argentine pesos against current assets of about 1,405 million pesos. For general unsecured creditors, the plan includes a 50% haircut on verified claims, a one-year grace period after homologation, and four additional years of payments in annual 25% installments. Pesos debts accrue interest at the Banco Nación passive rate, while U.S. dollar claims carry 6% annual interest.
Strategic suppliers of critical inputs and services can choose from three options: 30% haircut paid over 24 months starting after six months; 20% haircut over 36 months starting after four months; or full payment over 42 months starting after six months. Labor creditors face a 10% haircut, with payments over two years after six months. Fiscal debts with AFIP and others will use existing moratoriums or be paid in full over 96 months at 2.02% monthly interest. Works councils and unions follow a similar four-year schedule.
The agreement restores full administration of assets, lifting general asset freezes. A creditors’ committee, including representatives from International Lease Finance Corporation Sweden and Intercargo, will oversee compliance. The airline, founded in 2006 in Salta to link the northwest with Buenos Aires, had entered the process amid financial distress worsened by the pandemic.