Avianca announced today that it has successfully completed its financial restructuring process and emerged from Chapter 11 as a more efficient and financially stronger airline, with significantly reduced debt and over $1 billion of liquidity.
With the exit from Chapter 11, the Company has a new business model with a more flexible product tailored to each passenger’s needs and more accessible pricing while retaining Avianca’s leading network and frequencies, best-in-class loyalty program, and one of the largest cargo operations in the region.
Adrian Neuhauser, President and Chief Executive Officer of Avianca, said: “We look forward to the Company’s future success as we continue building upon Avianca’s rich history across Latin America and internationally. We appreciate the support of our loyal customers, partners, and lenders throughout this process. I would also like to thank our dedicated employees for their commitment to providing uninterrupted service to our customers and whose hard work enabled us to complete this process efficiently. I am confident that we are well-positioned to be a highly competitive and successful carrier.”
As per the approved plan of reorganization, the new shareholders will invest in Avianca Group International Limited, a new holding company, which will be domiciled in the United Kingdom and will consolidate the group’s investments in all of its subsidiaries (including Aerovias del Continente Americano, its Colombian subsidiary, and TACA International, its Central American operation). The prior holding company, Avianca Holdings was domiciled in Panama.
This post was published on 2 December 2021 11:35 am