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The airline trusts that the Colombian court will authorize the national government, in a timely manner, to advance the financing.
Avianca’s response It is given in the middle of a court order that stopped the loan for US $ 370 million that the Colombian Ministry of Finance authorized to rescue the company.
“Avianca reiterates its gratitude to the Colombian government for its support, and for its sustained commitment to participate in the debtor-in-possession (“DIP”) financing of the Company during its reorganization under Chapter 11“Said the company in an official communication.
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The airline explained that it will provide information to the Colombian Court in the coming days that, together with the response of the national government, it will show that Colombia’s participation in the company’s DIP financing “is a beneficial transaction for the country.
“DIP financing of Avianca not only has the support of the Government, but also that of the Company’s existing creditors, as well as 90 external institutional investors. This financing is essential to sustain the airline’s operations, maintain air connectivity in Colombia, and support the country in its economic recovery ”, the airline explained.
The company stated that “Financing has been structured by granting the Government – and senior private institutional investors – important backing guarantees, as well as attractive financial returns; in addition, it gives them priority in repayment over other creditors, including over participants in the subordinated tranche of US $ 700 million of the DIP financing ”.
