This is how the airline seeks to reactivate the disbursement suspended by the Cundinamarca Court

Avianca Holdings SA announced that in the coming days it will provide information to the Administrative Court of Cundinamarca showing that the participation of the National Government in the restructuring of the company will be a beneficial transaction for the country.

This was stated by the company in a statement after the Court ordered to suspend the disbursement of the loan for 370 million dollars from the Emergency Mitigation Fund to help finance the restructuring of the company after the emergency of covid-19.

Avianca Holdings assured that the financing of the restructuring was structured by granting important guarantees to support the Government and private investors, along with attractive financial returns and repayment priorities.

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Avianca also reiterated its gratitude to the Government for its commitment and support in financing the reorganization of the company and also recalled that the process not only has its help, but also with the company’s creditors and 90 external institutional investors.

“This financing is essential to sustain the operations of the airline, maintain air connectivity in Colombia, and support the country in its economic recovery,” the company said in the statement.

“Avianca hopes to present its DIP motion to the United States Bankruptcy Court for the Southern District of New York next week, and trusts that the Colombian Court will authorize the National Government, in a timely manner, to move forward with the financing”, Avianca assured.