Avianca | Airline announced that it will not use financing from the national government – Sectors – Economy

Avianca Holdings informed, through a statement, that it will continue with its reorganization plan, “Without the participation of the Government of Colombia in the DIP financing.”

(You may be interested: ‘Avianca contemplates a reduction of six thousand jobs in the long term’).

In October, the company received approval from the Bankruptcy Court of the United States to access financing under the figure of debtor in possession (DIP, for its acronym in English), for about 2,000 million dollars and, likewise, the initial disbursement was made.

Avianca He recalled that although the financing was structured to allow the possible future participation of one or more governments, “said financing did not depend on any government participation.”

“With the support of a large number of external institutional investors and existing lenders in its DIP financing, Avianca You have the financial flexibility during this stage to support your operations and continue to advance your reorganization plan without the participation of the Ggovernment of Colombia in DIP financing, ”the airline says in its statement.

(Also: ‘Avianca and the pilots’ union sign a collective labor agreement’).

The company thanked the government for its efforts (which had approved the granting of a loan of up to 370 million dollars to the airline to support its reorganization process), to help the country’s tourism sector, which was highly affected by the covid-19 pandemic.

Finally, she assured that she will continue to focus on safely serving her clients and connecting individuals, families, and businesses throughout Latin America during and after the Chapter 11 process.

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ECONOMY AND BUSINESS