Avianca Nets $2 Billion in Bankruptcy Loans From Chairman, United Airlines and Investors

Avianca Holdings SA, one of Latin America’s largest airlines, lined up a $2 billion bankruptcy-loan package to finance its stay in chapter 11 from a group of investors and lenders including United Airlines Inc. and Chairman Roberto Kriete, The Wall Street Journal reported. Since filing for bankruptcy in May after the coronavirus pandemic curtailed flying, Avianca has been working to raise capital to stay in business as air travel remains deeply depressed world-wide. “We are extremely pleased with the support received from a large number of third-party institutional investors and our existing lenders,” said Avianca Chief Executive Anko van der Werff. “We believe this demonstrates the market’s confidence in Avianca’s future as a strong, competitive and profitable airline.” With the loan proposal, the three large Latin American airlines pushed into bankruptcy by the pandemic—Avianca, Latam Airlines Group SA and Grupo Aeromexico SAB—have all found sources of private capital to weather the financial impact of Covid-19. Read more