Liquidation Begins Of Avianca Peru

After parent company Avianca Airlines (NYSE: AVH, BVC, PFAVH) filed for chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York. the Board of Directors of Avianca Peru S.A., the Peruvian subsidiary of the Company agreed to terminate its operations in Peru and begin a dissolution and liquidation process under local Peruvian law in order to preserve and protect Avianca’s businesses in the face of the Coronavirus COVID-19 pandemic & economic crisis.

In the future, Avianca says it will continue to serve routes to and from Peru through its airline subsidiaries in Colombia, El Salvador and Ecuador, once the restrictions imposed by the authorities under the current health emergency are lifted. For customers with valid tickets purchased directly to or from Peru, several exchange, reaccomodation and voucher options will be available.

Process implementation

A General Shareholders Meeting of Avianca Peru agreed to proceed with a voluntary liquidation and dissolution of Avianca Peru. Currently, the liquidation proceeding is in process of liquidating liabilities and assets of such entity. Such process is under the supervision of Estrategia Consultores S.A.C, the designated independent liquidator. Although the agreement of the General Shareholders’ Meeting has already been published, its registration in the Public
Registry of Peru is pending due to the fact the offices in which said registration must be made are closed due to the state of emergency in such country. Under this liquidation process, the payment of social benefits of the employees of Avianca Peru will have priority within the framework of the liquidation. Avianca Peru employs 906 employees.

The airline previously stopped paying debt and certain expenses and had warned that it did not have enough cash on hand to continue making payroll. Pilots in Peru have already initiated labor actions against the airline, and the carrier faces public opposition in Colombia to a direct government rescue.

Those with claims against Avianca may contact Avianca’s claims agent, Kurtzman Carson Consultants, at www.kccllc.net/avianca. Information is also available by calling (866) 967-1780 (U.S./Canada) or +1 (310) 751-2680 (International), as well as by email at www.kccllc.net/avianca/inquiry.

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