Grupo Posadas Receives Court Approval to Comprehensively Restructure Debt

MEXICO CITY, Dec. 8, 2021 /PRNewswire/ -- Grupo Posadas S.A.B. de C.V. (BMV: POSADASA) (the "Company") today announced that the U.S. Bankruptcy Court for the Southern District of New York has approved its Plan of Reorganization. This paves the way for the Company to emerge from the "prepackaged" in-court restructuring proceedings in the U.S. in short order with a sustainable capital structure and poised for long-term success.

The Court's confirmation followed overwhelming support of the Plan by holders of the Company's 7.875% senior notes due 2022 (the "Existing Notes"), with 100% of those voting having voted to approve it. This financial solution will reduce the Company's debt service obligations and extend the schedule on which the Existing Notes mature by 5.5 years, to December 30, 2027, allowing Grupo Posadas to prioritize the use of its cash for operating activities to preserve jobs and help maintain the high quality for which its hotels are known.

"With today's approval of the Plan, we are nearing the successful completion of the comprehensive debt restructuring we began a few months ago to maximize our financial flexibility and best manage the COVID-19-related challenges affecting the global hospitality industry," said Jose Carlos Azcarraga, Chief Executive Officer of Grupo Posadas. "We greatly appreciated the support of all of our valued stakeholders as we took this final pivotal step to strengthen our finances. We look forward to emerging from this process even better positioned to continue operating with the highest standards, open exciting new properties as tourism further rebounds, and remain Mexico's leading hotel operator for many years to come."

Under the terms of the Plan, the Existing Notes will be canceled and exchanged for new senior notes secured by liens on real estate and certain accounts receivable of the Company. All other undisputed claims, including those of suppliers for goods and services provided before as well as during the Court process, are unimpaired and have been, or will be, paid in full in the ordinary course or otherwise satisfied. Common shares of Grupo Posadas continue to trade in the normal course.

Additional Information

For additional information about the Company's debt restructuring and access to Court documents, please visit https://cases.primeclerk.com/posadas/.

The Company is represented by Cleary Gottlieb Steen & Hamilton LLP as international legal counsel, Ritch, Mueller y Nicolau, S.C. as special Mexican counsel, Creel, García-Cuéllar, Aiza y Enríquez, S.C. as special Mexican restructuring counsel, and DD3 Capital Partners as financial advisor.

About Posadas

Posadas is the leading hotel operator in Mexico and owns, leases, franchises and manages 186 hotels and 28,888 rooms in the most important and visited urban and coastal destinations in Mexico. Urban hotels represent 87% of total rooms and coastal hotels represent 13%. Posadas operates the following brands: Live Aqua Beach Resort, Live Aqua Urban Resort, Live Aqua Boutique Resort, Grand Fiesta Americana, Curamoria Collection, Fiesta Americana, The Explorean, Fiesta Americana Vacation Villas, Live Aqua Residence Club, Fiesta Inn, Fiesta Inn LOFT, Fiesta Inn Express, Gamma, IOH Hotels, and One Hotels. Posadas has traded on the Mexican Stock Exchange since 1992.

Forward-Looking Statements

This press release contains forward-looking statements. Such statements may include words such as "may," "will," "expect," "intend," "anticipate," "estimate," "project," "believe" or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on Posadas' current plans, estimates and projections and, therefore, you should not place undue reliance on them. Forward-looking statements involve inherent known and unknown risks, uncertainties and other factors, many of which are outside of Posadas' control and difficult to predict. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement, including, but not limited to, the ability to consummate a plan of reorganization in accordance with the terms of the Restructuring Support Agreement; risks attendant to the prepackaged in-court restructuring proceedings (the "Restructuring"), the outcomes of Bankruptcy Court rulings and the Restructuring in general and the length of time that we may be required to operate in the Restructuring proceedings; the effectiveness of the overall restructuring activities pursuant to the Restructuring and any additional strategies that we may employ to address our liquidity and capital resources; and any other restrictions imposed by the Bankruptcy Court. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them, whether in light of new information, future events or otherwise.

Investor Contact:

Gerardo de Prevoisin, [email protected]

Media Contacts:

Kekst CNC (U.S.)

Sherri L. Toub / Ross Lovern

[email protected] / [email protected]

Zimat Consultores (Mexico)

Francisco Galindo

[email protected]

SOURCE Grupo Posadas