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AVH - Avianca Holdings SA News Story

$0.88 0.0  0.0%

Last Trade - 08/05/20

Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.52bn
Position in Universe th / 6856

UPDATE 1-Court suspends Avianca Brasil bankruptcy auction of airport slots

Mon 6th May, 2019 8:34pm
(Updates with details of decision, context)
    By Marcelo Rochabrun
    SAO PAULO, May 6 (Reuters) - A Brazilian appeals court on
Monday suspended a bankruptcy auction set for Tuesday, in which
struggling carrier Avianca Brasil hoped to raise at least $140
million by selling some of its coveted airport takeoff and
landing rights, known as slots.
    The suspension could put further stress on Avianca Brasil,
the country's No. 4 airline, which has been operating with very
little cash since filing for bankruptcy protection in December.
The auction would have capped an arduous process in which
Avianca Brasil fought aircraft lessors for months to try to keep
operating its fleet despite missed payments. 
    The airline's operations have shrunk dramatically since
April, when lessors won definitive rulings allowing them to 
repossess planes. Its fleet is down to six aircraft, from as
many as 60 Airbus SE  AIR.PA  planes late last year. 
    Suspension of Tuesday's auction, first reported by newspaper
O Estado de S. Paulo, was requested by airport operator
Swissport AG  IPO-SWPO.S , which runs several Brazilian airports
and is owed some 17 million reais ($4.3 million).
    Swissport and several other Avianca Brasil creditors have
expressed anger at the outsize role played in the process by
U.S. hedge fund Elliott Management — by far the airline's
largest creditor. Under the current auction plan, much of the
cash raised would cover Elliott's debts, totaling over $400
million, and much less would go to the rest of the creditors. 
    A spokeswoman for Avianca Brasil did not have immediate
comment. It is unclear when a new auction will be scheduled.
    ($1 = 3.9544 reais)

 (Reporting by Marcelo Rochabrun
Editing by Susan Thomas)
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