As we informed you in the past days, Avianca was on the verge of closing its bankruptcy process in the United States. Yesterday, November 2, this process ended, so the Colombian-flagged airline will continue its plan to reorganize in the UK.
The company has been under Chapter 11 US bankruptcy protection since 2020, with the process coming to an end at the door, it was leaked that the company’s new owners, which would be the financial entities that contributed US dollars. 3000 million dollars to restructure AviancaThey will take stock of the company in the form of a payment.
Information that the new management intends to reintegrate the company in England has also been leaked, much to the dismay of the federal judge in charge of the case in New York, the Honorable Martin Glenn. This is in order to take advantage of the capital protection laws for home owners located in the UK.
At the end of the corresponding legal proceedings in New York, Avianca management announced today, Wednesday, 3 November, that it will already incorporate the company in the United Kingdom under the name Avianca Group International Ltd. The capital is sound as UK bankruptcy law prohibits debtors from touching the capital of the company.
Another advantage Avianca will have in terms of tax payments is that it qualifies for a series of strong payment exemptions due to its precarious economic situation. As a result of this decision, Avianca will cease to be listed on the Colombian Stock Exchange, which has already suspended the sale of the company’s shares as of today and will be permanently canceled.
The Company will continue to operate normally with the integrity of its destinations, fleet and contracts. The change will only be legal and will bring great benefits to the new owners.
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