Avianca Appeals Order That Blocked $370 Million Emergency Loan

Avianca Holdings on Tuesday said it had appealed a court order that last week banned Colombia’s government from providing the troubled airline with a $370 million loan to finance part of its bankruptcy restructuring, Reuters reported. The airline, which filed for bankruptcy in May due to the coronavirus pandemic’s effect on travel, said that without the loan, keeping the company afloat would become “untenable.” The loan is part of a $2 billion financing package that is key to the carrier exiting bankruptcy protection. The Colombian government’s slice of the package had been questioned in a Colombian court under the argument that Avianca’s guarantees on the loan were insufficient. Read more

Location