Colombia-based Avianca Holdings S.A. (OTCMKTS: AVHOQ) (BVC: PFAVH) has announced the release of a statement regarding the Company´s expected debtor-in-possession (DIP) financing, the company said.
The statement was issued following the announcement by the Republic of Colombia´s Ministerio de Hacienda y Credito Público (the Finance Ministry) that the management committee of the country´s Fondo de Mitigación de Emergencias (FOME, the Emergency Mitigation Fund) had approved the government´s participation in Avianca´s DIP financing, through a commitment of up to USD 370 million in the proposed loan structure, side by side with private market investors. Avianca commented as follows:
As we previously disclosed on August 13, 2020, Avianca´s DIP loan financing is expected to consist of two tranches that include approximately US$ 1.2 billion of new funds as part of a USD 2.0 billion overall financing facility (including rollups of existing debt and purchase consideration) which will allow the Company to finance its operations during the pendency of its Chapter 11 reorganization.
Avianca Holdings S.A. is a holding company for Avianca, operating a fleet of 158 aircraft and served 76 destinations in 27 countries within the Americas and Europe. With more than 21,000 employees, the Company earned USD 4.6 million in 2019 and carried 30.5 million passengers.