HAVANA TIMES – The Colombian government’s participation in the financial restructuring of Avianca airlines, offering a loan of up to 370 million dollars, seeks to keep the airline operational, the Finance Ministry said in a statement on Saturday, reported dpa news.
The Colombian airline filed for insolvency in May, following a significant drop in sales due to the coronavirus pandemic.
The holding company and several subsidiaries applied for creditor protection under Chapter 11 of the US Bankruptcy Code. Due to travel restrictions imposed during the pandemic, Avianca had to largely discontinue its regular operations in mid-March.
The rescue operation still must be evaluated and authorized by the judge in charge of the case in New York, the announcement continued.
Avianca is a key airline in Latin America, flying to many destinations in the region, as well as to North America and Europe.
The predecessor company of Avianca was founded in 1919 as the Colombian-German Air Transport Company, making Avianca one of the world’s oldest airlines.
Read another article about Avianca: Avianca shareholders arrested in Brazil