Avianca announced today that after 18 months in bankruptcy, it has successfully completed its financial restructuring process and emerged from Chapter 11 reorganization. The airline has significantly restructured its business model, reducing frequent flyer benefits, reducing passenger services, and removing luxury perks from its planes such as onboard entertainment and reclining seats. Previous retail shareholders were completely wiped out by the bankruptcy.
Based on the approved plan of reorganization, the new shareholders will invest in a new holding company domiciled in the United Kingdom, Avianca Group International Limited, and will consolidate the group’s investments in all of its subsidiaries (including Aerovias del Continente Americano, its Colombian subsidiary, and TACA International, its Central American operation). The prior holding company, Avianca Holdings was domiciled in Panama.
Roberto Kriete, Chairman of the Board, stated: “We are very proud of the work that the Avianca team has done that has led the company to emerge from Chapter 11 on schedule as a financially stronger organization. While we are on the right path to recovery, we must remain cautious with the progress of the pandemic that has not yet ended and must stay focused on executing our new business plan. I have all the confidence that with the support of our investors, all those who believed in us and with the current leadership, this company will continue to grow while connecting Latin America.”
Adrian Neuhauser, President and Chief Executive Officer of Avianca, said: “We look forward to the Company’s future success as we continue building upon Avianca’s rich history across Latin America and internationally. We appreciate the support of our loyal customers, partners, and lenders throughout this process. I would also like to thank our dedicated employees for their commitment to providing uninterrupted service to our customers and whose hard work enabled us to complete this process efficiently. I am confident that we are well-positioned to be a highly competitive and successful carrier.”