NEW YORK - Avianca Holdings, one of the biggest carriers in Latin America, filed for Chapter 11 bankruptcy after travel bans across the region forced the Colombian airline to ground its fleet.
"Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the Covid-19 pandemic," chief executive officer Anko Van Der Werff said in the statement."We believe that a reorganization under Chapter 11 is the best path forward to protect the essential air travel and air transport services that we provide across Colombia and other markets throughout Latin America.
"Unlike with so many messy Latin American bankruptcy situations, at least a US filing is quick and orderly and allows for debtor-in-possession financing," he said."Avianca could have a chance of coming out of this crisis actually operating as an airline." SKIPPED PAYMENTS Avianca will not pay a US$65.6 million bond maturity or make a coupon on bonds due in 2023, chief financial officer Adrian Neuhauser said in an online briefing on Sunday evening. The payments are due Monday and the company decided to keep as much liquidity as possible during the restructuring, he said.