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The airline has significantly restructured its business model, reducing frequent flyer benefits, reducing passenger services, and removing luxury perks from its planes.

After a $370 million USD government loan was blocked by a Colombian court, a US bankruptcy judge approved a total of $1.217 billion USD in new DIP loans that Avianca was able to negotiate from existing creditors and new investors.

Avianca says it has raised $2 billion of DIP financing, including new loans and refinancing of existing notes, despite the blockage of a $370 million USD bailout loan from the Colombian government.

Bankrupt airline Avianca has revealed that it is working on debtor in possession financing with several investment banks including Seabury Securities, Goldman Sachs, and JPMorgan Chase; subject to approval by US Bankruptcy Court and creditors. The deal would potentially open a...