Avianca Holdings Continues Progress in
Reorganization Process
Receives Final Court Approval to Protect Ongoing
Operations
BOGOTA, Colombia, June 11, 2020 — Avianca
Holdings S.A. (NYSE: AVH, BVC: PFAVH) (the “Company” or “Avianca”)
today announced that the U.S. Bankruptcy Court for the Southern
District of New York recently granted final approvals for most of
the Company’s “first day” motions to help ensure that Avianca
continues normal business operations throughout the reorganization
process.
Among other things, the Court provided final approval for motions
that will allow Avianca to:
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Maintain its network of customer programs throughout the process.
Customers can continue to arrange travel and fly with Avianca in
the same way they always have. Additionally, Avianca customers will
continue to accrue miles when they fly with Avianca, and can
continue to redeem miles earned through LifeMiles™ to purchase tickets
with Avianca during this process.
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Honor various prepetition and ongoing obligations owed to certain
of its travel agency partners, interline and codeshare partners,
and vendors and suppliers. The Company will continue to pay vendors
and suppliers, as well as travel agency partners, in the ordinary
course for goods and services provided on or after May 10,
2020.
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Pay accrued and ongoing prepetition taxes and fees, as well as
insurance and surety bond obligations, as they come due in the
ordinary course of business.
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Anko van der Werff, Chief Executive Officer of Avianca, said, “We
are pleased that the Court has granted final approval for most of
our ’first day’ motions, which enables us to continue moving
forward in our reorganization process. These approvals reinforce
our ability to continue operating through this process and
underscore our progress toward emerging as a highly competitive and
successful carrier in the Americas. We look forward to continuing
our productive engagement with key stakeholders and other
interested parties and welcoming customers back to the skies once
travel restrictions are lifted. We remain steadfast in our
commitment to connecting people, families and businesses, and we
thank our stakeholders for their continued support.”
As previously announced, on May 10, 2020, Avianca and certain
of its subsidiaries and affiliates filed voluntary petitions under
Chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of New York to preserve
and reorganize Avianca’s businesses. LifeMiles™, Avianca’s loyalty
program, is administered by a separate company and is not part of
the Chapter 11 filing. Avianca customer programs are continuing and
customers can arrange travel and fly with Avianca as they always
have. Avianca is committed to continue serving customers with safe,
reliable air travel as COVID-19 travel restrictions are
gradually lifted.
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.
