Brazil Judge Halts Suits Seeking to Repossess Avianca Brasil Jets

A Brazilian bankruptcy judge late on Tuesday granted a request by the country’s fourth-largest airline, Avianca Brasil, to suspend lawsuits seeking repossession of at least 14 of its aircraft, according to a court document, Reuters reported. Avianca Brasil filed for bankruptcy protection on Monday, after aircraft lessors sued and won initial victories in seeking to repossess the planes. The airline has 494 million reais ($129 million) in debt, according to a court filing that is under seal but was seen by Reuters. Its top creditor is state-controlled oil company Petroleo Brasileiro SA (Petrobras), owed 60 million reais for fuel, followed by airports and aircraft maintenance providers including General Electric Co unit GE Celma and United Technologies Corp’s Pratt & Whitney. At least three leasing companies have sued Avianca Brasil seeking to repossess passenger jets representing 30 percent of its fleet. Read more