Bogotá D.C., May 24, 2019
S.A. (the Company) reports that it was informed today by BRW Aviation LLC (BRW, part of the Synergy Group), owner of 78.1% of the Companys common stock, Kingsland Holdings Limited (Kingsland ), owner of
21.9% of the Companys common stock and United Airlines, Inc., owner of one (1) share of the Company, of the following decisions:
the breach of the guaranteed loan between BRW and United, United took remedial measures. These measures essentially consist in appointing an independent third party to exercise the voting rights of the shares in BRW and consequently in its
subsidiary Avianca Holdings. The independent third party is Kingsland, the largest minority shareholder of the Company, which with a trajectory of 40 years in aviation.
United has clarified that the property owned by BRW (controlled by Synergy) in Avianca Holdings has not been transferred nor, indirectly, in its subsidiary
Aerovías del Continente Americano S.A. (Avianca Colombia).
As the Company has been informed, Kingslands task will be to continue working to
achieve good and transparent corporate governance at Avianca Holdings that ensures the stability and financial sustainability of the company in the long term. The measures related to BRW that are announced today do not change the course of the
existing alliance between United Airlines and Avianca Holdings. Uniteds agreement with BRW is totally independent from the commercial joint venture with Avianca and Copa and does not affect it.
Likewise and as the Company has been informed, with the measure that United announces today, United Airlines has
taken control of Avianca Holdings,
its operation, its service, or business decisions. The contractual rights exercised by United to date consist of appointing an independent third party (Kingsland), to exercise the right to vote in BRW and its subsidiaries Avianca Holdings and
This means that Germán and José Efromovich still have the indirect ownership of BRW and its subsidiaries, but not the
right to vote.
Kingsland has stated that it supports Avianca in the implementation of its transformation plan under principles of good corporate
governance that brings success to Avianca.
Likewise, United and Kingsland have indicated that they would be willing to offer new financing to Avianca, if
required and requested, of up to $250 million, provided that certain commitments are assumed by other interested parties.
In addition to the effects
mentioned in this communication and the changes of the Board of Directors and the amendment to the Bylaws that have already been reported to the market, the Company does not foresee other legal, financial or administrative effects derived from these
For further information please contact:
Avianca Investor Relations
ext. 2474, 1349
ABOUT AVIANCA HOLDINGS S.A.
The terms Avianca
Holdings or the Company refer to the consolidated entity. The original source-language text of this announcement is the official, authoritative version, Translations are provided as an accommodation only, and should be
cross-referenced with the source-language text, which is the only version of the text intended to have legal effect.