Avianca achieves credit commitments of more than $2 billion.
Avianca Holdings reported that it obtained approval of credits for a little more than 2,000 million dollars in its restructuring process under Chapter 11 of the U.S. Bankruptcy Law, so it asked a New York court to authorize the financing operation, reported Reuters.
The financing, structured in two tranches, includes approximately 1,200 million dollars in fresh resources, of which about a quarter is expected to come from the Government of Colombia, where Avianca maintains its largest base of operations.
“We are very satisfied with the support received from a large number of new institutional investors, as well as from our current creditors,” said Avianca’s CEO, Anko van der Werff, in a statement issued Monday night.
“Securing these funding commitments is another concrete step in our Chapter 11 reorganization process and we look forward to the Court’s approval of our DIP (Debtor in Possession) funding proposal,” he explained.
Colombia’s flagship airline explained that the DIP loan is secured by a number of Avianca’s strategic assets, including its holdings in LifeMiles and its cargo subsidiary, its relevant brands and its cash accounts.
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