BOGOTA, Nov 2 (Reuters) – The Southern District of New York has accredited Colombian airliner Avianca’s (AVT_p.CN) reorganization approach, Avianca claimed on Tuesday, which will enable the corporation to full its Chapter 11 individual bankruptcy process prior to the stop of the 12 months.
Avianca, together with rival Chile’s LATAM Airlines, were the two largest carriers in the region right before the coronavirus pandemic, but each had been sent into bankruptcy restructuring when the virus upended air travel, amid specifically rigid constraints in Latin The united states.
Avianca experienced by now posted various years of losses right before the pandemic began, and went as a result of a boardroom coup in 2019 led by United Airlines.
“Avianca announces that now, following presenting selected supplemental documentation that had been necessary by the court, the tribunal of the Southern District of New York verified the company’s reorganization strategy,” the enterprise said in a statement from Bogota.
“The airline expects to effectively complete that course of action and arise from Chapter 11 just before the close of the 12 months as a financially more powerful and a lot more productive airline.”
Avianca will have considerably considerably less debt and more than $1 billion in liquidity when it finishes the personal bankruptcy system, the assertion stated.
The company ideas to have 130 airplanes servicing 200 routes by 2025, it added.
Through the personal bankruptcy method, Avianca received about $2 billion in new funding.
Reporting by Julia Symmes Cobb in Bogota
Editing by Matthew Lewis
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