Avianca Not To Pay Dividends, States No Reserves or Retained Earnings Availabile

In a statement and 6K filing with the US Securities and Exchange Commission (SEC) yesterday, Colombian airline Avianca (NYSE: AVH, BVC: PFAVH) announced that the board of directors  has decided not to pay dividends for fiscal year end 2019. Avianca is facing internal investigations for its role in the Airbus bribery scandal, and government investigations regarding flight practices in addition to operational challenges and the Coronavirus outbreak. Patients with Covid-19 Coronavirus have now been confirmed in three Colombian cities.

In the airline’s 6-K filing with the SEC it stated: 

Avianca Holdings S.A. (the “Company”) informs that, after further analysis, the Company’s Board of Directors decided by written resolution dated as of March 9, 2020 to recommend to the Company’s ordinary shareholders assembly that dividends not be distributed for the fiscal year ended December 31, 2019. The Company does not hold any retained earnings nor reserves for the distribution of dividends. The Company’s ordinary shareholders’ meeting will be held on March 27, 2020.