November 16, 2021 –Avianca achieves confirmation of reorganization plan
Upon emergence, the Company will have a solid balance sheet, with significantly reduced debt and over $1 billion in liquidity. Avianca’s restructuring will enable the Company to continue repositioning and simplifying its business, re-establishing as the carrier of choice in Latin America by adopting more competitive pricing for clients, reconfiguring aircraft with best-in-class modern seating, expanding network routes both domestically and internationally, refinancing its aircraft portfolio and obtaining long-term financing commitments. Avianca will keep the airline’s differentiating and competitive assets, which include a robust network, one of the best loyalty programs, VIP Lounges, signature services and one of the most competitive cargo solutions in the region.
Rohit Philip, Chief Financial Officer of Avianca, said: “We are pleased to have reached this critical milestone and look forward to emerging as a stronger organization that is well positioned to fly the skies for many years to come. The financial and operational progress we have already achieved are a testament to the tenacity and commitment of the entire Avianca team, and I am proud of their tremendous efforts”.
Adrian Neuhauser, President and Chief Executive Officer of Avianca, said: “On behalf of everyone at Avianca, I want to express our gratitude to our loyal customers, partners, and lenders for their continued support. I especially want to thank Judge Glenn for his thoughtful and responsible oversight of the process. Looking ahead, with a stronger financial foundation, Avianca will be better positioned to capture recovering travel demand with a compelling value proposition to meet the needs of today’s clients across Latin America and beyond. We are a company that combines an over-100-year legacy with modern, optimized service, while remaining committed to continuing to set the standard for safety, customer service, and value across the industry.”
Avianca’s updated business plan impacts all facets of operations – the destinations Avianca will serve, the aircraft Avianca will operate, and the way Avianca will serve customers – to build on its leadership position and drive its future success.
Notably, the business plan projects:
Avianca’s Business Vision Milestones:
Over the course of 2021, Avianca has made significant progress on its new business vision in three key areas: strengthening its network, redesigning products and enhancing services. Certain milestones that the Company has already successfully achieved include:
Court filings and other documents related to the Chapter 11 process are available on a separate website administered by Avianca’s claims agent, Kurtzman Carson Consultants, at www.kccllc.net/avianca. Information is also available by calling (866) 967-1780 (U.S./Canada) or +1 (310) 751-2680 (International), as well as by email at www.kccllc.net/avianca/inquiry.
Seabury Securities LLC is serving as financial advisor to Avianca, and Milbank LLP is serving as legal advisor.
* The value of the outstanding shares of the Company (including the preferred shares traded under ticker symbols OTCMKTS: AVHOQ, BVC: PFAVH) will be reduced to zero and will cease to have value and Avianca’s assets and liabilities will be reorganized under a new holding company
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