Avianca seeking DIP financing to fly out of bankruptcy

Avianca, JFK, approach, landing, restructuring, bankruptcy, 575, Latam, Colombia
By Oliver West
20 Aug 2020

Senior secured bondholders of Colombian airline Avianca could recover 45% of their principal if they provide debtor-in-possession (DIP) financing to the company, which has been in chapter 11 bankruptcy proceedings since May.

Avianca presented its proposed DIP financing structuring alongside the release of its second quarter results, saying that it plans to obtain $1.216bn of new funding from existing and new lenders.  

Including the rollover of certain existing debt, Avianca is likely to end up with a $1.989bn DIP financing package. ...

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