Avianca’s creditors will now vote on a plan to exchange $935 million in debt for a controlling 72% stake in the carrier, Reuters reports.
Avianca was Latin America’s second-largest airline before the pandemic saw it filing for Chapter 11 bankruptcy protection in the US in May 2020. It is likely to exit bankruptcy by the end of October if investors approve the plan.
The carrier said it had secured $1.6 billion in refinancing and would launch 23 new international routes by 2022 within Latin and North America. Avianca plans to continue its Heathrow-Bogota service.
