Avianca Approved to Send Bankruptcy Exit Plan for Creditor Vote
- Creditors will swap $935 million in debt for 72% of airline
- Colombian carrier may exit bankruptcy as early as Oct. 31
This article is for subscribers only.
Avianca Holdings SA won court approval to send its reorganization plan to creditors for a vote, bringing the Colombian air carrier one step closer to exiting bankruptcy under new ownership.
Lenders and noteholders who agreed to refinance their debt at the beginning of Avianca’s bankruptcy case last year will get 72% of the airline’s equity in exchange for canceling about $934.7 million, according to court papers.