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AVH - Avianca Holdings SA News Story

$0.88 0.0  0.0%

Last Trade - 08/05/20

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.51bn
Position in Universe th / 6846

UPDATE 1-Ahead of key bankruptcy hearing, Avianca Brasil to sell assets to Azul

Mon 11th March, 2019 12:52pm
(Recasts with details of upcoming hearing and context
throughout)
    SAO PAULO, March 11 (Reuters) - Brazilian airline Azul SA
 AZUL.N  said on Monday it intends to pay $105 million for
certain assets held by Avianca Brasil, which was headed to court
to face aircraft lessors as it seeks to keep operating planes
despite mounting late payments.
    Azul said the non-binding purchase agreement would involve
70 pairs of slots, which grant airlines the rights to operate
regular flights between airports.
    Azul already operates two Airbus A320 planes that were
previously used by Avianca Brasil until they were repossessed in
December due to outstanding payments. Under the agreement
announced on Monday, Azul said it could end up operating up to
30 Airbus planes currently in use by its rival.
    Azul did not disclose how it would be able to take over the
leases and the airline did not immediately respond to a request
for comment.
    Avianca Brasil filed for bankruptcy protection in December
in an attempt to stall aircraft lessors who had sued to
repossess its fleet, two months after the carrier started
missing payments on many of its aircraft.
    The Avianca Brasil hearing scheduled for Monday in an
appeals court will deal with a request from aircraft lessors,
including Aircastle  AYR.N , that planes be repossessed as soon
as possible, after a bankruptcy judge extended the airline's
control over the aircraft until at least April.
    Since filing for bankruptcy, Avianca Brasil has secured a
$75 million loan from hedge fund Elliot Management.

 (Reporting by Marcelo Rochabrun and Ana Mano
Editing by Chizu Nomiyama and Bill Trott)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
+55-119-4470-4529; Reuters Messaging:
ana.mano.thomsonreuters.com@reuters.net))
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