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Avianca Holdings filed a report with the United States Stock Exchange Commission, to notify investors and the general public of the impossibility of timely issuing the annual report, that originally should have been presented on April 30, 2020, due to the current situation of COVID-19.
In a communication, the Company warns that the audit, carried out by KPGM, will include a warning, according to which there is “substantial doubt about our ability to continue operating”.
In the same message, the company explains that being an airline with operations in numerous jurisdictions, the pandemic has proven to be an unprecedented challenge.
He also explained that, since the beginning of March of this year, has focused exclusively on overcoming the complexities that COVID-19 has created for your business and its employees and this situation has generated a delay in the preparation and completion of the company report.
Also in the communication, it states that it expects to present the report no later than June 14, 2020, that is, 45 days after the original date.
“The COVID-19 outbreak may continue to have adverse material effects on the entire aviation industry and on ourselves“Warns Avianca.
Remember that due to the pandemic, several countries in the world, including the United States and most Latin American countries, such as Colombia, declared a state of emergency, including quarantines and strong travel restrictions.
He adds, “We cannot predict or quantify the extent of the impact of COVID-19 on our operational and financial performance, which will depend on any event related to the spread of the outbreak, the duration, the scope of quarantine measures, travel restrictions and the impact on overall demand for air travel, which are highly uncertain and cannot be predicted. “
And it ends the communication of the company ensuring that as reported in its report of March 27, 2020, it has temporarily deferred the payments of some long-term leases, as well as capital payments on certain obligations.
By virtue of this, currently “we are in default under any of our termination contracts and their obligations, if our operations remain suspended for a period dragged on“We may have to take additional steps to preserve our business and protect our cash position as much as possible,” the information concludes.
“AT ALL TIMES, CARACOL RADIO, MORE COMPANY”.
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