Due to the effects of the pandemic in the airline industry, Avianca Holding recorded losses of US$1,094 million in 2020, as reported by the airline to the Financial Superintendence of Colombia.
“At year-end 2020, the company had cash of US$911 million to meet its operating needs. This cash, together with commitments of funds still available as of December 31 under the DIP financing of US$350 million, represent a total liquidity position of the company at year-end of US$1,261 million”, in the airline industry, Avianca Holding recorded losses of US$1,094 million in 2020″.
In view of this situation, Avianca’s management informed that the shareholders’ meeting will be informed that no profit distribution will be made.
Avianca Holdings is currently under a judicial reorganization process regulated by Chapter 11 of the U.S. Bankruptcy Code and supervised by the Bankruptcy Court of the Southern District of New York. As previously announced, on September 21, 2020 the company closed a DIP (“Debtor in Possession”) financing for nearly US$2 billion, of which approximately US$1.2 billion were new resource commitments and the remainder refinancings of prior debt.