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BOGOTA, Dec 1 (Reuters) – Colombian airline Avianca (AVT_p.CN) claimed on Wednesday it has efficiently completed its Chapter 11 bankruptcy course of action, a thirty day period immediately after a U.S. court docket permitted its reorganization course of action.
“These days the prior disorders have been accomplished,” the airline mentioned in a statement from Bogota. Avianca “has emerged effectively from claimed system.”
Avianca, alongside with rival Chile’s LATAM Airways (LTM.SN), ended up the two most significant carriers in the area just before the coronavirus pandemic, but both of those ended up despatched into bankruptcy restructuring when the virus upended air travel, amid primarily rigorous restrictions in Latin America.
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Avianca had currently posted many decades of losses prior to the pandemic started, and went by a boardroom coup in 2019 led by United Airlines (UAL.O).
The Southern District of New York accredited the firm’s reorganization prepare in early November, a day right before Avianca introduced it will move its domicile to Britain and its inventory will no more time be traded on the Colombian inventory exchange. browse more
Once its principle domicile is recognized in Britain, the firm will be known as Avianca Group Worldwide Ltd. Its current shareholders will not obtain any payout or be bundled as shareholders in Avianca Team, the airline has explained.
(This tale refiles to alter to ‘airline’ from ‘airliner’ all through)
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Reporting by Julia Symmes Cobb
Editing by Marguerita Choy
Our Expectations: The Thomson Reuters Trust Concepts.