Mexicana de Aviacion Offically Bankrupt Says Federal Judge; Could Mexican Airline Be Saved?

A federal Mexican judge has declared that the airline company Mexicana de Aviación is officially bankrupt. Edith Alarcón, a judge in the Eleventh Civil District of Court, confirmed that Mexicana's bankruptcy, as well as the separation of base insolvency has concluded. "This judicial body declares the company Mexicana de Aviación to be in total bankruptcy," she declared in a written statement. The Judge ordered the notification to be given to creditors and investors living in the country.

Mexicana de Aviación, Mexico's oldest airline company, announced it would suspend operations indefinitely effective noon August 28, 2010. The District Judge has also revealed that Mexicana's subsidiary, Caribe SA de CV, is also officially bankrupt. The statement continued, saying "The undersigned bankruptcy agreement is approved Mexicana MRO and its creditors including Banco Mercantil del Norte, Grupo Financiero Banorte and the International Airport of Mexico City."

Ricardo del Valle, secretary general of the Aviation Association, confirmed Edith Alarcón's announcement this morning. Mexicana de Aviación, Mexicana Click and Mexicana Inter have all been declared officialy bankrupt. "We regret this decision, since we have worked hard so that Mexicana de Aviación could fly once more, it was necessary, for the 8,500 jobs at stake," he said. "It's an atypical bankruptcy, its taken three years and seven months, however, we, as an organization, always insisted that we would work until the last to get Mexicana to fly again."