Control of Avianca: New York Court Issues Summary Judgement In Favor of United & Kriete’s Kingsland Holdings, Against BRW Aviation, Efromovich
This morning in a New York court, a judge issued summary judgement affirming Kingsland Holding’s control of Avianca, after industrialist Germán Efromovich defaulted on loan payments to United Airlines collateralized by Efromovich’s stake in Avianca Holdings (NYSE: AVH)
“There was a court hearing in NY today in the Kingsland Holdings Limited v. BRW Aviation, LLC lawsuit, but it resulted in no change in the management or ownership of Avianca Holdings S.A. (“AVH”) or its subsidiary Avianca S.A.” said Avianca Holdings in a filing with the US Securities & Exchange Commission (SEC).
Kingsland, controlled by Avianca chairman Roberto Kriete, as the independent third party working on behalf of the collateral agent under the loan agreement between BRW and United Airlines, remains the manager of BRW and thus controls BRW’s majority stake in AVH and Avianca.
The statement added: “The NY court awarded summary judgment to Kingsland on its claims against BRW and its parent BRW Aviation Holdings LLC (“Holdco”) that they defaulted under the loan agreement. The court also ruled that it would maintain the status quo by continuing to prohibit Holdco from interfering with Kingsland’s lawful management of BRW’s majority stake in AVH. These rulings are intermediate steps in the judicial foreclosure process in NY and are subject to appeal, and any foreclosure sale of BRW or its AVH shares will not occur until the end of that process.”