Avianca Brasil In Talks Since Before Bankruptcy Filing For Cash Boost

Brazil’s fourth-largest airline, Avianca Brasil, has been in talks for a much-needed cash injection since before it filed for bankruptcy on Monday, German Efromovich, whose family controls the carrier, told Reuters. Efromovich, the controlling shareholder of better-known airline Avianca Holdings SA said in a phone interview on Thursday that he was negotiating with funds, which he declined to identify, Reuters reported. He also declined to elaborate on the value and whether the transaction would be debt or equity. Avianca Brasil had faced recurring losses and a series of airplane repossession lawsuits. It lost four planes in the days leading up to its Monday bankruptcy filing, according to a source with knowledge of the disputes. At least 10 other planes are still under dispute, and a judge ruled on Thursday that Avianca Brasil can hold on to them for 30 days in case the parties can reach a deal. Read more

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