[ad_1]
The Colombian airline Avianca announced this Sunday that it asked to file for the United States bankruptcy law to initiate a reorganization process due to “the speed and dramatic escalation of the impact of the Covid-19 crisis.”
“Avianca Holdings and some of its subsidiaries and affiliates today requested to voluntarily file for Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court of the Southern District of New York, in order to preserve and reorganize Avianca’s business “, the company said in a statement.
The Colombian airline, which has been on the ground since March 23 due to the government-ordered flight ban, added that “accepting this process was necessary due to the unpredictable impact of the Covid-19 pandemic, which has caused a 90 percent decrease in global passenger traffic. “
The company, which turned 100 years old last December, added that halting its regular passenger operations reduced its consolidated revenues by more than 80 percent and “has put significant pressure on its liquidity.”
The worst crisis in a century
“The effects of the Covid-19 pandemic have led us to face the most challenging crisis in our 100-year history as a company,” said Avianca Holdings CEO. Anko van der Werff, quoted in the statement.
Van der Werff noted that despite the company’s successful debt restructuring last year, filing for bankruptcy is a necessary step “for meet our financial challenges “ since the recovery of the sector will be gradual.
“When the government-imposed restrictions on air travel are lifted and we can gradually resume our passenger flights, we hope to contribute to the revival of the economy in Colombia and in our other key markets and to reinstate our employees,” added Van der Werff. .
The goal is to keep flying
Avianca Holdings assured that by filing for bankruptcy, it seeks “protect and preserve operations to continue serving customers with safe and reliable air travel, under the strictest biosecurity protocols, as the travel restrictions generated by the Covid-19 are gradually lifted. “
It also aims to “ensure connectivity and boost investment and tourism by continuing to be the main airline in Colombia, serving more than 50 percent of the domestic market in the country and an essential service without stops” in South America, North America and the markets. Europeans.
With this measure it also seeks “preserve the jobs in Colombia and other markets in which it operates”, as well as “restructure the balance sheet and the obligations of the company”.
This company generates more than 21,000 direct and indirect jobs throughout Latin America, of which more than 14,000 are in Colombia, and works with a network of more than 3,000 suppliers, the company added.
