Advent Heard Investing in Mexicana

Private equity shop Advent is rumored to be investing about $49m in bankrupt airline Mexicana. Advent did not return calls for comment. A spokesman for the pilot union does say, however, that it is in negotiations with several potential investors to “save the airline,” but declines to name them, citing confidentiality agreements. He explains that for a period of 100 days, the pilot union will be negotiating routes, fleet and working conditions, among other things, with potential investors. Pilots hold a 5% stake in Mexicana, a participation that a union member describes as, “worthless.” “The Posadas Group that controls the airline has practically dismantled [the airline] in the past 4 years,” he alleges. The union official adds that “the group created 16 other companies to which it has been transferring Mexicana’s assets.” Some of those companies are MexicanaClick and MexicanaLink, he claims.