Avianca Holdings S.A. Issues Statement on Government of Colombia Financing Commitment
and Colombian Court Injunction
BOGOTA, Colombia, September 12, 2020 – Avianca Holdings S.A. (OTCMKTS: AVHOQ, BVC: PFAVH) (the “Company” or
“Avianca”) today issued a statement regarding the commitment from the Government of Colombia to participate in the Company’s expected debtor-in-possession
(“DIP”) financing, following the injunction issued by the Administrative Court of Cundinamarca. Avianca commented as follows:
Avianca reiterates its gratitude to the Republic of Colombia for its continuing support and commitment to participate in the Company’s debtor-in-possession (DIP) financing. Avianca’s DIP financing, which is supported not only by the government of Colombia but also by the Company’s existing
lenders and by more than 90 additional third-party institutional investors, is critical to sustain Avianca’s operations, maintain connectivity throughout Colombia, and help support the country’s economic recovery.
Avianca looks forward to presenting information to the Colombian courts in the coming days, alongside information being presented by the
government of Colombia, that will demonstrate that participation by the Republic of Colombia in the Company’s debtor-in-possession financing is a beneficial
transaction for the country. The transaction has been structured in a way that provides substantial collateral support as well as attractive economic returns to the Republic that are equal to those of other senior secured private institutional
investors, and ahead of certain other key stakeholders and third-party lenders in a US$ 700 million subordinated loan.
We expect to
file our DIP motion with the U.S. Bankruptcy Court in the coming week and are confident that the Colombian courts will authorize the Colombian government to move forward with funding in a timely manner.
Additional information about the DIP financing is available on Avianca’s website (www.aviancaholdings.com).
About Avianca Holdings S.A. (OTCMKTS: AVHOQ) (BVC: PFAVH)
Avianca is the trademark for the group of passenger airlines and cargo airlines under the holding company Avianca Holdings S.A. Avianca has been flying
continuously for 100 years. As of December 2019, the Company operated a fleet of 158 aircraft and served 76 destinations in 27 countries within the Americas and Europe. With more than 21,000 employees, the Company earned US$ 4.6 billion in 2019
and carried 30.5 million passengers.
Forward-Looking Statements
Avianca has included statements in this press release that constitute “forward-looking statements”. As a general matter, forward-looking statements
are those focused on future or anticipated events or trends, expectations, and beliefs including, among other things, the Company’s expectations with respect to its Chapter 11 proceedings, the airline industry and the impacts of COVID-19. Such statements are intended to be identified by words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,”
“project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon the Company’s then-current expectations,
estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward-looking statements.
Forward-looking statements in this press release are not guarantees of future performance and involve risks and uncertainties, including with respect to the
Chapter 11 process, related negotiations and hearings before the Bankruptcy Court, as well as the COVID-19 crisis. Actual results may differ materially from those projected in this press release for numerous
reasons, including factors outside of the Company’s control. The Company expressly disclaims any obligation to update or revise this press release, including any forward-looking statements, whether as a result of new information, future events
or otherwise.