US court approves Avianca’s bankruptcy plan, according to agency – 11/02/2021 – Mercado

Avianca said Tuesday(2) that after filing new documents, the Southern District Court in New York approved the reorganization plan, which will allow the company to wind down its process in US bankruptcy law (Chapter 11, sort of Judicial recovery) according to a report published by Reuters news agency.

The airline says it hopes to complete the process by the end of this year and emerge from Chapter 11 as a stronger and more financially efficient company.

In addition, it says it will have less debt and more than $1 billion in liquidity when the bankruptcy process ends. The company plans to have 130 active aircraft on more than 200 routes by 2025.

During the bankruptcy process, Avianca received about R$2 billion in new financing, according to Reuters.

Avianca was one of the largest airlines in Latin America before the pandemic, but it filed for bankruptcy after suspending travel to contain Covid-19, especially in Latin America. The company has already recorded losses in previous years.

In July 2020, . was released A Sao Paulo court has declared Avianca Brasil’s bankruptcy Following a request from the same company, which has been under judicial reorganization since 2018 and has debts of more than R$2.7 billion.