Avianca Tells Colombia Court That Carrier Can Guarantee Loan
- Finance Ministry has 10 days to respond to motion against loan
- Airline was set to receive $370 million in bailout funding
Workers stand beside an Avianca Holdings SA aircraft before flights resume at El Dorado International Airport (BOG) in Bogota, Colombia, on Aug. 31.
Photographer: Ivan Valencia/BloombergThis article is for subscribers only.
A Colombian court temporarily blocked a $370 million government loan to Avianca Holdings SA after a citizen expressed concern about a lack of guarantees.
The Cundinamarca Administrative Tribunal granted an injunction to suspend disbursement after a motion filed by a citizen against the Finance Ministry, the presidency and the airline said the loan, part of its debtor-in-possession financing, may become a “threat” to collective rights and public worth, according to a copy of the ruling sent by court.