Colombian airline Avianca says it has completed bankruptcy proceedings


A logo of the aviation company Avianca is pictured in the headquarters building in Bogota, Colombia on August 29, 2019. REUTERS / Luisa Gonzalez

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BOGOTA, December 1 (Reuters) – Colombian airline Avianca (AVT_p.CN) on Wednesday announced that it had completed its Chapter 11 bankruptcy proceedings, a month after a U.S. court approved its reorganization process.

“Today the preconditions have been met,” the airline said in a statement from Bogota. Avianca “has successfully emerged from this process”.

Avianca, along with Chilean rival LATAM Airlines (LTM.SN), were the region’s two largest carriers before the coronavirus pandemic, but both were bankrupt when the virus disrupted air travel, amid restrictions particularly strict in Latin America.

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Avianca had already suffered several years of losses before the start of the pandemic, started on  and suffered a coup in 2019 led by United Airlines (UAL.O).

The Southern District of New York City approved the company’s reorganization plan in early November, a day before Avianca announced that it would be moving its home to Britain and that its shares will no longer be traded on the Colombian Stock Exchange. Read more

Once its main domicile is established in Great Britain, the company will be known as Avianca Group International Ltd. Its current shareholders will not receive any payment or be included as shareholders of Avianca Group, the airline said.

(This story is passed on to go from “airline” to “airliner” everywhere)

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Reporting by Julia Symmes Cobb Editing by Marguerita Choy

Our standards: Thomson Reuters Trust Principles.

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