Avianca Holdings S.A. issues statement on Government of Colombia financing commitment and Colombian Court injunction

Avianca Holdings S.A. has issued a statement regarding the commitment from the Government of Colombia to participate in the Company’s expected debtor-in-possession (“DIP”) financing, following the injunction issued by the Administrative Court of Cundinamarca. Avianca commented as follows:

Avianca reiterates its gratitude to the Republic of Colombia for its continuing support and commitment to participate in the Company’s debtor-in-possession (DIP) financing.  Avianca’s DIP financing, which is supported not only by the government of Colombia but also by the Company’s existing lenders and by more than 90 additional third-party institutional investors, is critical to sustain Avianca’s operations, maintain connectivity throughout Colombia, and help support the country’s economic recovery.

Avianca looks forward to presenting information to the Colombian courts in the coming days, alongside information being presented by the government of Colombia, that will demonstrate that participation by the Republic of Colombia in the Company’s debtor-in-possession financing is a beneficial transaction for the country. The transaction has been structured in a way that provides substantial collateral support as well as attractive economic returns to the Republic that are equal to those of other senior secured private institutional investors, and ahead of certain other key stakeholders and third-party lenders in a US$ 700 million subordinated loan.

We expect to file our DIP motion with the US Bankruptcy Court in the coming week and are confident that the Colombian courts will authorize the Colombian government to move forward with funding in a timely manner.

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