US court approves Avianca access to financing for $2 billion

Photo: Courtesy.
Editorial Dept. Voz de la Diaspora

The Avianca Holdings company announced that the United States Bankruptcy Court approved that it can access a financing plan for more than 2,000 millions of dollars, under the figure of Debtors of Possession (DIP) to help you get out of your restructuring process.

“The DIP financing package includes US $1.217 million of new funds to support the Company's ongoing operations and execute its organizational adjustments plan ", Avianca said in a statement.

Photography: Courtesy.

The airline entered a financial restructuring process in May under the US Bankruptcy Law and recently the phased reestablishment of its activities after several Latin American countries, including Colombia, The isolation measures were lifted due to the COVID-19 pandemic that still plagues the region.

The CFO to Avianca, Adrian Neuhauser, said that "the approval of the DIP financing package is a significant milestone and an important step forward for the Company".

Photography: Courtesy.

While the president and CEO of Avianca Holdings, Anko van der Werff, held that "With the approval of the US Court. THE. of DIP financing, Avianca increases its financial liquidity, providing support to our operations ", according to the statement sent to the press.

With the lifting of restrictions due to COVID-19, Avianca resumed passenger flights to 21 cities in Colombia and 14 international destinations, and they hope to add other destinations, said the company.

Photography: Courtesy.

Avianca Holdings S.A. uses Avianca as a trademark for the group of passenger and cargo airlines. As of December of last year it had 158 planes and more than 21,000 employees who served the transportation of 30,5 million passengers with sales of 4,600 millions of dollars.