Through a statement, published in Información Relevante de la Superfinanciera, Avianca Holdings S.A. announced that it will provide relevant information to the Administrative Court of Cundinamarca.
“Avianca will provide information to the Colombian Court in the next few days that, together with the response of the National Government, will evidence that Colombia’s participation in the Company’s DIP (debtor-in-possession) financing is a beneficial transaction for the country,” detailed the press release.
Likewise, the company affirmed that the financing has been structured by granting the government and private institutional investors “important guarantees of support, as well as attractive financial returns; furthermore, it gives them priority of repayment over other creditors, including over the participants in the subordinated tranche of US$700 million of the DIP financing”.
Finally, Avianca expects to file its DIP motion with the United States Bankruptcy Court for the Southern District of New York next week, and is confident that the Colombian Court will authorize the national government to move forward with the financing in a timely manner.
By Johana Lorduy – La República