Monday , January 18 2021

Avianca Brazil receives bankruptcy protection and Latam Airlines shares rise

Avianca Holdings has a very bad time and has had a real backlog in the stock market after the subsidiary in Brazil has accepted the bankruptcy protection figure.

This complex situation would force the company to cancel flights between December 10 and 31, which would affect 77,000 passengers because of the threat of having 14 aircraft removed according to documents seen by Reuters.

Avianca Brazil has been hit by high fuel costs and demands that threaten part of its aircraft, the agency said.

The procedure, which is under way in the first section of bankruptcy and legal recovery of Sao Paulo, is kept under secrecy.

Last week, the airline was forced by the Brazilian right to return 11 flights from its fleet to the Irish company Constitution Aircraft, a subsidiary of US Aircastle, for non-payment in the lease.

According to sources of law, three other debt measures were filed by suppliers against the fourth largest airline in Brazil.

This company and Avianca Colombia are owned by the conglomerate, controlled by Germán Efromovich, an aviation investor, born in Bolivia, who sealed an alliance last week and received a loan of US $ 456 million. From the airline United Continental Holdings.

Avianca Holdings decreased by 17.54% on the Bogota Stock Exchange, although the paper later reduced losses to only 1%.

But the loser capitalizes another. Latam Airlines, which has significant operations in Brazil, experienced a 4.74% jump on the Santiago Stock Exchange, while Gol rose 13.04% and was the best possible share on the Sao Paulo Stock Exchange. today's day

Victory Viera, Vector Capital Investment Analyst, said that "the strong growth of the paper is based on the bankruptcy of the subsidiary of Brazil by the Colombian airline Avianca, indicating less competition in Brazilian markets, which allows for Other sectors of the sector to record strong increases.

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