Avianca declares bankruptcy after flights in Latin America were suspended

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Avianca Holdings Inc., one of the largest Airlines In Latin America, he filed for bankruptcy, after a travel ban across the region forced the Colombian company to stop its fleet.According to the news agency BloombergAvianca, which regards United Airlines Holdings and Kingsland Holdings as a shareholder, has applied to protect it from its creditors in New York’s Southern District, according to court documents.

The company recorded a large amount of $ 10 billion in the form of financial obligations, and the same amount in the form of assets.

The airline stopped operating flights in late March, after governments across Latin America closed the border to reduce a pandemic (Coved 19).

Avianca had just come out of a tumultuous year, in which she restructured her debts and embarked on a recovery plan aimed at restoring her ability to make profits by focusing on trips through her hub in Bogota.

In late March, the company’s CEO, Anko Van der Werf, postponed payment of the rental amounts, canceled planned investments, and offered to provide unpaid leave to some of the company’s 21,000 workers in order to cut costs.

The company also postponed the release of its annual financial report until June, and said it would include a warning that there were fundamental doubts about Avianca’s ability to continue operating.



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