Avianca successfully completes its financial restructuring process

The Colombian airline Avianca successfully completed your bankruptcy process for the Chapter 11 of the United States Bankruptcy Law, a month after a court in that country approved its reorganization process.

“Today the precedent conditions have been met,” the airline said in a statement from Bogotá, adding that it had “successfully emerged from said process.”

Avianca, along with its Chilean rival LATAM Airlines, were the two largest airlines in the region before the coronavirus pandemic, but both suffered a bankruptcy restructuring when the virus disrupted air travel, amid especially strict restrictions in Latin America. .

Avianca had already recorded several years of losses before the pandemic began, and went through a revolt in the board of directors in 2019. led by United Airlines.

The Southern District of New York approved the company’s reorganization plan in early November, a day before Avianca announced that it will move its domicile to the United Kingdom and its shares will cease to be traded on the Colombian Stock Exchange.

Once its main domicile is established in the United Kingdom, the company will be known as Avianca Group International Ltd. Its current shareholders will not receive any payment or be included as shareholders of Avianca Group, the airline said.

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