Colombian airline Avianca has filed for Chapter 11 bankruptcy in the U.S. Southern District of New York citing a fall of more than 80% in consolidated revenue as flights continue being grounded because of to the COVID-19 pandemic.
In a statement, the organization reported it would use the bankruptcy to balance its sheet obligations to navigate the outcomes of COVID-19 and to deal with liabilities, leases, plane orders, and other commitments. The organization also reported it intends to wind-down its operations in Peru.
In a study report, analysts at the Centre for Aviation reported Avianca was in a “period of upheaval” even before the world-wide well being disaster. In April 2019, CEO Hernan Rincon Lema announced he was leaving the organization soon after 3 a long time in the job.
The organization also noticed a sequence of destructive credit rating scores and a sudden improve in board control. Very last