Avianca Tells Colombia Court That Carrier Can Guarantee Loan

A Colombian court temporarily blocked a $370 million government loan to Avianca Holdings SA after a citizen expressed concern about a lack of guarantees, Bloomberg News reported. The Cundinamarca Administrative Tribunal granted an injunction to suspend disbursement after a motion filed by a citizen against the Finance Ministry, the presidency and the airline said the loan, part of its debtor-in-possession financing, may become a “threat” to collective rights and public worth, according to a copy of the ruling sent by court. The action filed by Jonatan Ruiz demanded the bankrupt airline provide “real, material and above all valuable” guarantees to back the loan, which has been blasted by local competitors and lawmakers who called it out-of-line compared with spending on social services and amounts offered to other airlines. Read more

Location