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.
