Avianca Holdings S.A. Fires Back at Claims of Kingsland Holdings Ltd.
March 27 2017 - 3:14PM
Business Wire
Avianca affirms commitment to long-term
strategic goal of a commercial alliance with a world-class partner
and a significant infusion of new capital, which is unquestionably
in the Company’s best interests
Today Avianca Holdings S.A. (Avianca or the Company) affirmed
its strategic plans to explore an alliance with United Airlines and
to seek a capital infusion through an equity offering to its
shareholders. In New York State Court, Avianca filed a lawsuit
against Kingsland Holdings Ltd. (Kingsland) and board member
Roberto Kriete to stop their improper actions aimed at blocking
Avianca’s progress. In addition, Avianca filed a motion to dismiss
all of Kingsland’s claims made in a lawsuit earlier this month and
opposed Kingsland’s motion for an injunction to stop the United
negotiations.
Avianca’s legal papers detail Kingsland’s attempts to block
Avianca from having negotiations with United about entering into a
strategic commercial alliance, a critical component of the
Company’s strategy to become the leading Latin American airline.
The proposed commercial partnership Avianca is negotiating with
United, a world-class airline, would provide important growth
opportunities and valuable synergies for Avianca.
Avianca’s legal papers also demonstrate that Avianca has at all
times performed its role under the parties’ shareholder agreement,
while Kingsland has explicitly breached its obligations. Avianca
points out that Kingsland’s legal maneuvers are a heavy-handed
attempt to obtain greater rights in the courtroom than it
previously negotiated for and agreed to in the parties’ shareholder
agreement.
Avianca’s suit asks the court for an order preventing Kingsland
from any further dissemination of the Company’s confidential
information, requiring Kingsland to comply with the dispute
resolution section of the parties’ shareholder agreement, and
requiring Kingsland’s representatives to cease interfering with the
shareholder agreement. The Company also requested that the court
dismiss Kingsland’s meritless lawsuit.
Hernán Rincón, Avianca´s CEO said, “Our Company is committed to
its passengers and the development of its business across the
continent. Our strategy is focused on superior service and
operational excellence, to offer our clients the best choices and
more opportunities to travel. We are looking beyond the litigation.
Avianca remains committed to achieving its two strategic objectives
approved by the Board: entering into a commercial alliance with a
world-class airline and raising needed new capital."
About Avianca Holdings S.A.
Avianca Holdings S.A. (NYSE: AVH) (BVC:PFAVH) comprises the
airlines: Aerovías del Continente Americano S.A. Avianca (Avianca),
Tampa Cargo S.A.S., incorporated in Colombia, Aerolineas Galapagos
S.A. - Aerogal, incorporated in Ecuador, and the TACA Group
companies: TACA International Airlines S.A., incorporated in El
Salvador, Lineas Aereas Costarricenses S.A., LACSA, incorporated in
Costa Rica, Trans Américan Airlines S.A., incorporated in Perú,
Servicios Aéreos Nacionales S.A., SANSA, incorporated in Costa
Rica, Aerotaxis La Costeña S.A., incorporated in Nicaragua, Isleña
de Inversiones S.A. de C.V., ISLEÑA, incorporated in Honduras and
Aviateca S.A., incorporated in Guatemala.
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version on businesswire.com: http://www.businesswire.com/news/home/20170327006096/en/
Laurie HaysBrunswick Group+1
212-333-3810lhays@brunswickgroup.comorDario VargasDattis+57
318-238-7886dario.vargas@dattis.com
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