Colombian airline Avianca has submitted for Chapter eleven personal bankruptcy in the U.S. Southern District of New York citing a drop of much more than eighty% in consolidated profits as flights remain grounded because of to the COVID-19 pandemic.
In a assertion, the company reported it would use the personal bankruptcy to stability its sheet obligations to navigate the effects of COVID-19 and to deal with liabilities, leases, aircraft orders, and other commitments. The company also reported it intends to wind-down its operations in Peru.
In a analysis report, analysts at the Centre for Aviation reported Avianca was in a “period of upheaval” even before the global health and fitness crisis. In April 2019, CEO Hernan Rincon Lema introduced he was leaving the company after a few a long time in the job.
The company also noticed a collection of destructive credit scores and a unexpected change in board regulate.