Avianca completes restructuring and leaves bankruptcy protection law – 12/02/2021

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Bogotá, Dec. 1 (EFE). Colombian airline Avianca has successfully completed a financial restructuring and is exiting US bankruptcy protection “with significantly reduced debt and more than $1 billion in liquidity,” the company said on Wednesday.

“We are delighted to successfully exit this operation with a company in a stronger financial position that will continue to serve all of its customers and fly for many years to come,” Avianca Chief Financial Officer Rohit Phillip said in a statement.

Avianca in May 2020 appealed Chapter 11 bankruptcy protection in the United States to get out of a crisis exacerbated by the covid-19 pandemic, and in July it secured financial commitments of $1.6 billion to sterilize its reorganization.

Reworked business model.

Avianca said it has revamped its business model to be more efficient, and is now offering a proposal that combines attributes of a low-cost airline model, as well as “maintaining key differentiators that allow it to be the most convenient alternative to travel for millions of passengers in Latin America and around the world.”

“We look forward to continuing to implement our new business vision and taking advantage of the recovery in travel demand to drive our future success,” said Philip.

Avianca’s president, Adrian Neuhauser, said he anticipates a successful future for the company and thanked “customers, partners and funders for their support throughout this process.”

Under the reorganization plan, the new shareholders will invest in the new holding company, UK-based Avianca Group International Limited. It replaces the previous Avianca Holdings, which was headquartered in Panama. EFE

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