Avianca applies for bankruptcy

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Avianca Holding, the second largest airline in Latin America, filed for bankruptcy on Sunday, as the deadline to repay outstanding bonds approaches and after unsuccessfully seeking urgent help from the Colombian government to survive the effects of the Corona virus crisis.
Avianca estimated the value of her financial obligations at between $ 1 billion and $ 10 billion in her application filed with the US Bankruptcy Court for the Southern District in New York.
“Avianca is facing the most difficult crisis in its 100-year history,” company CEO Enko Van der Werf said in a press release.
If it fails to get out of bankruptcy, Avianca will be one of the first major airlines in the world to fail due to the Corona virus crisis that has led to a 90% drop in global airline traffic. Avianca has not implemented any regular schedule of passenger flights since late March.
Avianca is also one of the oldest airlines in the world and is a source of pride for Colombians. The company went bankrupt before in the early 2000s and was rescued by German-born Bolivian businessman German Efromovich, one of the pioneers in the oil business.





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