Friday , November 22 2019
Home / colombia / United may stay with Avianca | Contact Us | Business

United may stay with Avianca | Contact Us | Business



The FligthGlobal.com web site, which specializes in aeronautics, guarantees that Avianca's largest shareholder, Synergy, owned by Germán Efromovich, could lose its shares in the company due to a default on a loan. .

Read: (Avianca Brazil will only operate at four airports as of today)

FligthGlobal reported that Synergy violated the terms of a United Airlines loan backed by the actions of the Latin American airline, opening up the possibility of United taking control of Avianca, although the two airlines are still in negotiations to form a joint venture.

Read: (Resignation of the Avianca president)

Avianca said in a confidential document on April 10 that it was informed by Synergy's subsidiary BRW Aviation and United that BRW has not complied with the US loan guarantee contract.

Read: (Avianca Holdings Announces Corporate Transformation Plan)

"BRW, which is incorporated in Delaware, holds approximately 78.1% of Avianca's common shares. In November 2018, BRW lent US $ 456 million to United, guaranteed by BRW's equity and its 516 million Avianca common shares, "according to the FligthGlobal website.

A United spokesman told the site that the Chicago airline did not take any compliance measures.

However, breach of the terms of the loan by BRW forced Avianca to restructure other financing agreements to include United as an authorized partner, so that Any possible United enforcement action in the form of an Avianca acquisition will not constitute a change of control.

Avianca told FlightGlobal that assuming that this approach is accepted by the creditors under such Avianca Holdings financing agreements, United could take ownership of Avianca Holdings 'shares without causing a change of control under any circumstances of Avianca Holdings' financing agreements.

Without the changes, some of Avianca's current financing contracts could be terminated in the event of a change of control, KPMG said in an independent audit report accompanying Avianca's financial statements.

Since the breach was reported, Avianca has negotiated an amended agreement with Banco de Bogotá, a lender, to avoid default. United Airlines, meanwhile, has been added as the beneficiary owner of Avianca, the Colombian airline informed FlightGlobal.

The United spokesman said any talk to change other Avianca loans will be made directly with the borrower. An Avianca spokesman meanwhile said that the airline is currently in the process of modifying its financing contracts and can not provide an estimate of when the negotiations will end.

Synergy has been under increasing financial pressure. All of its property, Avianca Brasil, is bankrupt and has already returned most of its fleet. While in Argentina, uncertainty reigns. Both are operated independently of Avianca Colombia.

The common brand, always the same information portal, led customers to confuse Avianca Colombia with Avianca Brasil, which is why the Colombian's actions suffered. In addition, the company's president, Hernán Rincón, resigned recently.

Since the end of 2018, Avianca has ceded non-core businesses and reduced its operations in an attempt to improve profitability. The company's operating profit fell 21% during 2018.

United's spokesman said he continues to move ahead with the planned joint venture with Avianca and Copa Airlines of Panama. The three Star Alliance operators introduced the agreement in November 2018, along with United's loan to Synergy.


Source link