BOGOTA, Nov. 2 (Reuters) – The Southern District of New York has approved the plan to reorganize Colombia’s Avianca airliner (AVT_p.CN), Avianca said on Tuesday, which will allow the company to complete its proceedings Chapter 11 bankruptcy before the end of the year. .
Avianca, along with Chilean rival LATAM Airlines, were the two largest carriers in the region before the coronavirus pandemic, but both were bankrupt when the virus disrupted air travel, amid particularly stringent restrictions in Latin America.
Avianca had already suffered several years of losses before the start of the pandemic and suffered a coup in 2019 led by United Airlines.
“Avianca announces that today, after submitting certain additional documents that had been required by the court, the Southern District Court of New York upheld the company’s reorganization plan,” the company said in a statement since. Bogota.
“The airline hopes to complete this process and exit Chapter 11 before the end of the year as a financially stronger and more efficient airline.”
Avianca will have far less debt and more than $ 1 billion in cash by the end of bankruptcy proceedings, the statement said.
The company plans to have 130 planes serving 200 routes by 2025, he added.
During the bankruptcy process, Avianca received approximately $ 2 billion in new funding.
Reporting by Julia Symmes Cobb in Bogota Editing by Matthew Lewis
Our standards: Thomson Reuters Trust Principles.