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The directors of Avianca Holdings announced that in the next few days they will send the Court of Cundinamarca all the necessary information toIt will demonstrate the conditions under which the Government would give it a loan (370 million dollars) and will confirm that this is an operation that benefits the country.
(Also read: Avianca pays a rate of more than 10% on credit of US $ 1,300 million)
Through a communication sent to the Market authorities, the directors of the airline reiterated their gratitude to the Colombian Government for the support provided at this juncture and they trusted that the Court of Cundinamarca, which yesterday left in suspense the possibility of said loans being made, end up endorsing the operation and so they can continue with their process of filing with the Bankruptcy Law of the United States.
(Read also: Court freezes the loan disbursement of US $ 370 million to Avianca)
“Avianca will provide information to the Colombian Court in the coming days that, together with the National Government’s response, it will show that Colombia’s participation in the Company’s DIP (debtor-in-possession) financing is a beneficial transaction for the country “
In this sense, the directives of Avianca Hiolding They added that the financing has been structured by granting the Government –and senior private institutional investors– important backing guarantees., as well as attractive financial returns.
The Colombian Government will have priority of repayment over other creditors, including participants in the subordinated tranche of $ 700 million of the DIP financing.
In addition, they indicated that the Colombian Government will have priority of repayment over other creditors, including participants in the subordinated tranche of 700 million dollars of the DIP financing.
They remembered that The company plans to file its DIP motion with the United States Bankruptcy Court for the Southern District of New York next week, Therefore, it trusts that the Colombian Court will authorize the National Government, in a timely manner, to advance with the financing.
Similarly, they commented that in this process Avianca also has the support of the company’s existing creditors and 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,” they said.
Worker support
For their part, several Avianca worker organizations came out to support said financing, which you consider of utmost importance not only for the company but also for the airline sector and the country in general.
After exposing the achievements that the company has had in terms of job creation, as a fundamental part of the national airline industry and as a flagship company of the country, the workers reiterated that financial aid is not a subsidy but, on the contrary, “a loan which will be returned in full and with market interest to the country’s coffers in less than 24 months.”
They insisted that the loan has all the necessary guarantees in the case to give peace of mind to the Colombian people and insisted that different workers’ organizations of the company They are in dialogue with the directives to reach agreements that allow the airline to be profitable, efficient and maintain a stable work environment over the long term.
The foregoing, they point out, will allow Avianca a successful reactivation and continue
performing the important mission of being an engine of economic and social development
in the country.
By: Economy and Business
