Grupo Posadas, one of the largest hotel operators in Mexico, has filed for Chapter 11 bankruptcy in U.S. court as it continues to manage the loss in revenue from the Covid-19 pandemic, according to a release from the company.
The "pre-agreed restructuring procedure" of Chapter 11, filed in the Southern District of New York, is expected to be complete in about 60 days as all of the noteholders for Grupo Posadas' debt have agreed to the reorganization plan, according to the statement.
"This comprehensive debt restructuring, which we announced two months ago as part of our ongoing efforts to maximize our financial flexibility and best manage the Covid-19-related challenges affecting the entire hospitality industry globally, will enable us to emerge from the pandemic as a financially stronger enterprise," Grupo Posadas CEO Jose Carlos Azcarraga said in a statement.
Grupo Posadas hotels will continue to operate without interruption using cash from ongoing operations.
"There will be no impact on the Company's relationships with its employees, guests, agencies, loyalty and vacation club members, suppliers, business partners or shareholders," the company said.
Grupo Posadas owns, leases, franchises and manages 185 hotels across Mexico. Its brands include Live Aqua, Fiesta Americana and Fiesta Inn.