The success of Avianca’s “first day” hearing marks the first
significant milestone of the Company’s Chapter 11 case, and
will allow it to both issue various critical payments and maintain
operational continuity throughout its reorganization. With its
requested relief granted, the Company can look forward to
productively engaging with key stakeholders and other interested
parties. Notably, the next Court hearing is currently scheduled for
June 11, 2020, where Avianca hopes to secure approval of all
interim orders on a final basis.
Ongoing Government Discussions
As previously announced, Avianca – like many other airlines
around the world, including in the United States, the European
Union, and Asia as well as in Latin America – is seeking
financial support from the governments of the countries where it
provides essential services. Avianca continues to be engaged in
discussions with the government of Colombia, as well as those of
its other key markets, regarding financing structures that would
provide critical additional liquidity to support the Company during
the Chapter 11 process and play a vital role in ensuring that
the Company emerges from its court-supervised reorganization as a
highly competitive and successful carrier in the Americas. In the
interim, while these discussions are ongoing, the Company intends
to utilize its cash on hand, combined with funds generated from its
ongoing operations (such as cargo), to support the business during
the court-supervised reorganization process.
Peru Operations
In parallel to its Chapter 11 filing in the U.S., as
previously announced, Avianca is commencing a liquidation of its
operations in Peru pursuant to local laws, which will allow Avianca
to renew its focus on core markets upon emergence from its
court-supervised reorganization.
Additional Resources
Additional resources for customers and other stakeholders, and
other information on Avianca’s filings, can be accessed by visiting
the Company’s Reorganization website at
aviancawillkeeponflying.com. Court filings and other documents
related to the Chapter 11 process in the U.S. are available on
a separate website administered by Avianca’s claims agent, Kurtzman
Carson Consultants, at www.kccllc.net/avianca. Information
is also available by calling (866) 967-1780 (U.S./Canada) or
+1 (310) 751-2680
(International), as well as by email at
www.kccllc.net/avianca/inquiry.
About Avianca Holdings S.A. (NYSE: AVH)
(BVC: PFAVH)
Avianca is the commercial brand for the collection of passenger
airlines and cargo airlines under the umbrella company Avianca
Holdings S.A. Avianca has been flying uninterrupted for 100 years.
With a fleet of 158 aircraft, Avianca serves 76 destinations in 27
countries within the Americas and Europe. With more than 21,000
employees, Avianca Holdings had revenues of US$4.6 billion in
2019 and transported 30.5 million passengers. On
February 22, 2019, Avianca Holdings announced its corporate
transformation plan consisting of four key pillars: 1) the
improvement of operational indicators, 2) fleet adjustments,
3) the optimization of operational profitability and
4) repositioning of non-strategic assets. On May 24,
2019, control of Avianca Holdings was assumed by Kingsland Holdings
Limited, an independent third party of United Airlines.
