Bogotá, Dec. 1 (EFE). Colombian airline Avianca has successfully completed its financial restructuring and emerged from bankruptcy “with significant debt reduction and over $1 billion in liquidity,” the company said on Wednesday.
“This is an important day for Avianca and all our stakeholders. We are pleased to have successfully exited this operation, with a company in a stronger financial position that will continue to serve all of its customers and fly for many years to come,” the company’s Chief Financial Officer, Rohit Philip, was quoted as saying in a statement to the airline.
Avianca filed for Chapter 11 bankruptcy law in May 2020 to get out of a crisis exacerbated by the covid-19 pandemic, and last July it secured $1.6 billion in financial commitments to fund its reorganization.
Renewed business model
Avianca noted that it has renewed its business model to be more efficient and for this reason is now presenting a proposal that combines the attributes of the low-cost airline model, as well as “preserving the main differences that allow it to be the most convenient travel alternative for millions of travelers and travelers in Latin America and the world”.
“We look forward to continuing to implement our new business vision and taking advantage of the recovery in travel demand to drive our future success,” said Philip.
Avianca’s president, Adrián Neuhauser, said he expected a successful future for the company and thanked “customers, partners and financiers throughout the process” for their support.
“I would also like to thank our employees for their commitment to providing uninterrupted service to all customers and whose hard work has allowed us to complete this process efficiently. I am confident that we are well positioned to be a highly competitive and successful airline,” he said. .
Under the reorganization plan, the new shareholders will invest in the new holding company Avianca Group International Limited, which will be based in the United Kingdom.
This replaces the previous one, Avianca Holdings, which was based in Panama.
“We are very proud of the work the Avianca team has done, which has seen the company exit Chapter 11 on time as a financially stronger organization,” said Roberto Creti, Avianca Chairman.
He added, “As we are on the right path to recovery, we must remain vigilant as the pandemic progresses which is not over yet. I have full confidence that it is with the support of our investors, of all who have believed in us.” And with the current management, this company will grow to continue connecting Latin America.” EFE
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