BOGOTA, Colombia, May 12, 2020 /PRNewswire/ -- Avianca
Holdings S.A. (NYSE: AVH, BVC: PFAVH) (the "Company" or "Avianca")
today announced that all "first day" motions related to the
Company's voluntary reorganization proceedings initiated on
May 10, 2020 have been approved on an
interim or final basis by the U.S. Bankruptcy Court for the
Southern District of New York.
Collectively, the orders granted by the Court at the hearing will
help ensure that Avianca continues normal business operations
throughout the reorganization process.
Anko van der Werff, Chief Executive Officer of Avianca, said,
"We are very pleased with the prompt approval by the Court of our
"first day" motions related to employees, customers, travel agency
partners and suppliers, among others. This was an important and
positive step forward in our reorganization and supports Avianca
continuing to operate through this process."
"We are committed to maintaining connectivity for people,
families and businesses and we look forward to gradually resuming
our passenger flights as travel restrictions are lifted. Our
customers, including our valued LifeMiles™ members, can be
confident that they can continue to arrange travel and fly with
Avianca in the same way they always have," Mr. Van der Werff continued.
"The Chapter 11 process is a responsible way for Avianca to
protect and preserve the Company as we navigate the severe impact
of COVID-19 on the airline and travel industries. We are continuing
our government discussions, and with their support, we are
confident that we will emerge as a better, more efficient airline
that continues to serve customers and provide essential air travel
across Colombia and Latin America. We are grateful for the support
of our business partners and recognize our continuing relationships
will also be important to a successful outcome of this process,"
Mr. Van der Werff added.
Among other things, the Court approved motions that will allow
Avianca to protect employees and suppliers while also continuing to
serve customers. Avianca received authorization to:
- Pay certain employee wages, compensation and benefit
obligations owed from before the filing date, as well as to
continue paying wages and honoring employee benefit programs in the
normal course of business during its Chapter 11 cases;
- Maintain its network of customer programs throughout this
process. Customers can continue to arrange travel and fly with
Avianca in the same way they always have. Additionally, Avianca
customers will continue to accrue miles when they fly with Avianca,
and can continue to redeem miles earned through LifeMiles™ to
purchase tickets with Avianca during this process; and,
- Honor various obligations owed to certain of its travel agency
partners, vendors and suppliers from before the filing date. The
Company will also continue to pay vendors and suppliers, as well as
travel agency partners, in the ordinary course for goods and
services provided on or after May 10,
2020.
The success of Avianca's "first day" hearing marks the
first significant milestone of the Company's Chapter 11 case, and
will allow it to both issue various critical payments and maintain
operational continuity throughout its reorganization. With its
requested relief granted, the Company can look forward to
productively engaging with key stakeholders and other interested
parties. Notably, the next Court hearing is currently scheduled for
June 11, 2020, where Avianca hopes to
secure approval of all interim orders on a final basis.
Ongoing Government Discussions
As previously announced, Avianca – like many other airlines
around the world, including in the United
States, the European Union, and Asia as well as in Latin America – is seeking financial support
from the governments of the countries where it provides essential
services. Avianca continues to be engaged in discussions with the
government of Colombia, as well as
those of its other key markets, regarding financing structures that
would provide critical additional liquidity to support the Company
during the Chapter 11 process and play a vital role in ensuring
that the Company emerges from its court-supervised reorganization
as a highly competitive and successful carrier in the Americas. In
the interim, while these discussions are ongoing, the Company
intends to utilize its cash on hand, combined with funds generated
from its ongoing operations (such as cargo), to support the
business during the court-supervised reorganization
process.
Peru Operations
In parallel to its Chapter 11 filing in the U.S., as previously
announced, Avianca is commencing a liquidation of its operations in
Peru pursuant to local laws, which
will allow Avianca to renew its focus on core markets upon
emergence from its court-supervised reorganization.
Additional Resources
Additional resources for customers and other stakeholders, and
other information on Avianca's filings, can be accessed by visiting
the Company's Reorganization website at
aviancawillkeeponflying.com. Court filings and other documents
related to the Chapter 11 process in the U.S. 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.
About Avianca Holdings S.A. (NYSE: AVH) (BVC: PFAVH)
Avianca is the commercial brand for the collection of passenger
airlines and cargo airlines under the umbrella company Avianca
Holdings S.A. Avianca has been flying uninterrupted for 100 years.
With a fleet of 158 aircraft, Avianca serves 76 destinations in 27
countries within the Americas and Europe. With more than 21,000 employees,
Avianca Holdings had revenues of US$4.6
billion in 2019 and transported 30.5 million passengers. On
February 22, 2019, Avianca Holdings
announced its corporate transformation plan consisting of four key
pillars: 1) the improvement of operational indicators, 2) fleet
adjustments, 3) the optimization of operational profitability and
4) repositioning of non-strategic assets. On May 24, 2019, control of Avianca Holdings was
assumed by Kingsland Holdings Limited, an independent third party
of United Airlines.
Contacts
Investor Contact
Avianca:
Luca Pfeifer, Head of Investor
Relations
ir@avianca.com
(571) (5877700)
U.S. and Europe Media Contact
Avianca:
Adriana Paulinne Sánchez, Corporate Communications
Adriana.sanchez@avianca.com
Joele Frank, Wilkinson Brimmer
Katcher:
Leigh Parrish
lparrish@joelefrank.com
+1 212 355 4449
Central America Media Contacts
Avianca:
Adriana Paulinne Sánchez, Corporate Communications
Adriana.sanchez@avianca.com
LLYC:
Alejandra Aljure, Director
aaljure@llorenteycuenca.com
Colombia and South America
Media Contact
Avianca:
Viviana Escobar, Corporate
Communications
viviana.escobar@avianca.com
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SOURCE Avianca Holdings S.A.