BOGOTA, Nov 2 (Reuters) – The Southern District of New York has approved Colombian airliner Avianca’s (AVT_p.CN) reorganization system, Avianca stated on Tuesday, which will make it possible for the enterprise to total its Chapter 11 bankruptcy method just before the conclusion of the calendar year.
Avianca, along with rival Chile’s LATAM Airlines, have been the two greatest carriers in the area ahead of the coronavirus pandemic, but each were being despatched into individual bankruptcy restructuring when the virus upended air vacation, amid in particular stringent limitations in Latin The us.
Avianca had by now posted several many years of losses before the pandemic commenced, and went as a result of a boardroom coup in 2019 led by United Airways.
“Avianca announces that these days, just after presenting selected extra documentation that had been needed by the courtroom, the tribunal of the Southern District of New York verified the firm’s reorganization prepare,” the business said in a statement from Bogota.
“The airline expects to successfully finish that procedure and emerge from Chapter 11 just before the end of the calendar year as a economically more powerful and a lot more effective airline.”
Avianca will have noticeably fewer personal debt and more than $1 billion in liquidity when it finishes the personal bankruptcy course of action, the assertion claimed.
The enterprise strategies to have 130 airplanes servicing 200 routes by 2025, it additional.
All through the personal bankruptcy process, Avianca been given all around $2 billion in new financing.
Reporting by Julia Symmes Cobb in Bogota
Enhancing by Matthew Lewis
Our Specifications: The Thomson Reuters Belief Rules.