Avianca Brasil receives protection against bankruptcy and Latam Airlines shares rise


Avianca Holdings is going through a very bad time and suffered a real setback in the stock market after its subsidiary in Brazil accepted the value of bankruptcy protection.

This complex situation would force the company to cancel flights between December 10 and 31, which would affect 77,000 passengers due to the threat of removal of 14 planes, according to documents seen by Reuters.

Avianca Brazil has been affected by high fuel costs and requirements that threaten part of its aircraft, the agency said.

The lawsuit, filed in the First Chamber of Bankruptcy and Judicial Recovery of São Paulo, is kept confidential.

Last week the airline was forced by the Brazilian courts to return 11 aircraft from its fleet to the Irish company Constitution Aircraft, a subsidiary of US Aircastle, for lack of payment in the lease.

According to judicial sources, three other debt claims were filed by suppliers against Brazil's fourth-largest airline.

This company and Avianca Colombia are owned by the conglomerate controlled by Germán Efromovich, an aeronautical investor born in Bolivia, who last week sealed an alliance and secured a US $ 456 million loan from United Continental Holdings.

Avianca Holdings fell 17.54% on the Bogota Stock Exchange, although the paper later reduced its losses to only 1%.

But what is lost capitalizes the other. Latam Airlines, which has a significant operation in Brazil, experienced a jump of 4.74% on the Santiago Stock Exchange, while Gol rose 13.04% and was the best performing stock on the São Paulo Stock Exchange. today's day

In the same vein, Vector Capital's investment analyst, Victo Viera, commented that "the strong growth in the paper is based on the bankruptcy of the Brazilian subsidiary Avianca in Brazil, which suggests less competition in the market." Brazilian market, allowing other stocks in the sector to register strong increases.


Source link