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Avianca to Seek $1.8 Billion With Bankruptcy Exit in Sight

  • Airline hires Seabury Securities to raise new financing
  • Colombian carrier expects to emerge from Chapter 11 in 2021

Avianca Holdings SA plans to raise $1.8 billion to repay debt and provide new financing as the Colombian airline eyes an exit from the bankruptcy reorganization it was forced into last year during the pandemic-driven travel collapse.

The air carrier retained Seabury Securities LLC to help raise the exit financing, likely a combination of debt and equity, the company said in a regulatory filing Wednesday. Avianca said it will repay $1.4 billion in bankruptcy loans and have around $1 billion in liquidity when it emerges from the reorganization at some point this year.