Avianca’s stock plummeted: closed at $ 66, down 85%

In addition to the fall in the local market, it was announced on Tuesday that the New York Stock Exchange will suspend and delist the ADS (Avianca eight-share package).

Avianca informed its shareholders through a statement published in the Superfinancial that the New York Stock Exchange (NYSE) suspended the listing of the airline’s ADS (which represents eight Avianca preferred shares). The measures take place after the company filed for Chapter 11 of the United States Bankruptcy Code.

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The NYSE also notified Avianca that it will request the Securities and Exchange Commission (SEC) to remove the ADSs once the applicable procedures are completed (including any appeals). In other words, the process to get the action (ADS) of the New York Stock Exchange airline began.

The statement clarifies that the Colombian Stock Exchange (BVC) notified Avianca that the company’s preferred shares continue to be listed on the Colombian market. Furthermore, “the airline’s preferred shares are still ineligible for repo transactions and are inadmissible as collateral for margin calls on other types of transactions, and as of May 11, 2020, no futures contracts may be entered into or options regarding Avianca preferred shares. ”

In 2019 Avianca recorded losses of US $ 893 million. He currently has a debt of US $ 5 billion that has weighed him down at this juncture in which the dollar has exceeded $ 4,100 and due to a worldwide uncertainty about the coronavirus that has restricted flights.

In fact, this Tuesday Avianca’s stock registered a drop of more than 85.3% on the Colombian Stock Exchange and closed at $ 600 (thus completing a drop of more than 90% in 2020). The title entered the BVC in 2013 with a price of $ 5,000. The crash comes after the restriction on trading price ranges was lifted: both lower and upper limits.

It is also noted that Avianca reported on Tuesday that all requests related to the voluntary reorganization filing have been approved provisionally or finally by the Court of the Southern District of New York.

The company explained that the orders issued by the Court will help ensure that Avianca continues its operations during the reorganization. Plus, you got approval to keep paying your allied employees, agencies, and suppliers.

Faced with this situation, Anko van der Werff, CEO and President of Avianca Holdings, said: “We are very satisfied with the prompt approval of our requests by the Court just one day after starting this process. For Avianca this step means the first of all that we will take to keep flying. We understand that the first news about our voluntary presentation to Chapter 11 could generate some confusion, but I want to be clear that the only thing we intend to do is protect the continuity of our business by honoring our history, a history in which all our collaborators, clients , suppliers and allies, in each territory in which we operate, have placed their trust ”.