Avianca has successfully completed the financial restructuring process

Colombian Airlines Avianca You have successfully completed your bankruptcy process for Chapter 11 of the US Bankruptcy Code, a month after a court in that country approved the reorganization.

“Today the previous conditions were fulfilled,” the airline said in a statement from Bogota, adding that it had “successfully exited from the said process.”

Avianca, along with Chilean rival LATAM Airlines, were the region’s two largest airlines before the coronavirus pandemic, but both suffered bankruptcy restructurings when the virus disrupted air travel, amid particularly stringent restrictions in Latin America.

Avianca already posted losses for several years before the pandemic started, and saw a boardroom revolution in 2019. Led by United Airlines.

The Southern District of New York approved the company’s reorganization plan in early November, a day before Avianca announced it would move its headquarters to the United Kingdom and stop trading its shares on the Columbia Stock Exchange.

The airline said that once it is headquartered in the UK, the company will be known as Avianca Group International Ltd. Its existing shareholders will not receive any payments and will not be listed as shareholders of the Avianca Group.

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