AeroMexico secured it's loan with it's share of PLM Listen to Mittleman's reasoning on the TD Fireside chat referenced in an earlier post.
AeroMexico secured the loans with it's share of PLM. Coming out of bankruptcy, PLM will remain AeroMexico's loyalty program and will be a key component to the success of the re-constituted company with AeroMexico depending on their frequent fliers to suceed. Mittleman insured that there is a seven year contract for PLM', knowing that ultimately AeroMexico wants to buy out Aimia's share, and guaranteed a Aimia a minimum price. Further, in the bankruptcy, should AeroMexico default on the loan, Aimia will have aquired at least part of AeroMexico's share of PLM at distressed valuation which would make Aimia the majority shareholder and give it significant leverage in the future. In the meantime, PLM remains healthy and separate from AeroMexico, (although temporarily not earning, but also with reduced costs and the pre-paid tickets to use as rewards), and is in a position to do a round of financing, raising cash to use as a special dividend to assist in AeroMexico's refinancing, but that would require that Aimia recieve a special dividend as well, allowing Aimia to cash out a significant part of PLM's value, without surendering control.
I'm glad I'm not negociating with Mittleman, I'm sure he'd clean out my last half jar of peanut butter after he'd taken everything else.