Published on : Friday, December 3, 2021
Avianca completes a financial restructuring process and emerged from Chapter 11 bankruptcy protection successfully. Officials claim the carrier is more efficient and financially stronger, with significantly reduced debt and over $1 billion in liquidity.
Rohit Philip, the chief financial officer of Avianca, said it is an important day for Avianca and all of its stakeholders. They are pleased to be emerging successfully from this process, with Avianca in a stronger financial position to continue serving their customers and flying the skies for many years to come. They look forward to continuing to execute on their new business vision and capitalize on the recovery in travel demand to drive their future success.
Last year, the carrier initially sought to restructure its operations in May, during the early stages of the Covid-19 pandemic. Adrian Neuhauser, chief executive of Avianca, said that they look forward to the company’s future success as they continue building upon Avianca’s rich history across Latin America and internationally.
As per the approved plan of reorganization, the new shareholders invest in Avianca Group International Limited, a new holding company to be domiciled in the United Kingdom. The new entity will consolidate the group’s investments in all subsidiaries. This includes Aerovias del Continente Americano, the Colombian subsidiary, and TACA International, the Central American operation. The prior holding company, Avianca Holdings was domiciled in Panama.