The Colombian airline Avianca (AVHOQ) (AVH) announced that it has secured commitments for debtor-in-possession financing for over $2 billion. The airline desperately tries to save a financing package that is a key to the existing bankruptcy protection.                                                                                                                                     

On September 22, 2020, Anko van der Werff, the CEO of Avianca (AVHOQ) (AVH), revealed that the airline has also filed a motion to approve the $2 billion financing package in the U.S. Bankruptcy Court. The CEO said that the airline already received support from the third-party institutional investors as well as already existing lenders.

Werff shared a concern that securing financing commitments was a crucial step in the airline’s reorganization process. The air carrier looks forward to the U.S Court approval of the proposed debtor-in-possession financing package.

Earlier in September 2020, Avianca (AVHOQ) (AVH) filed an appeal on Colombian court’s decision to suspend the  payout of a $370 million loan, a part of a $2 billion financing package, that had been already approved.

Colombia’s flag carrier Avianca has almostly lost hope of getting up to $370 million state loan, yet still continues to fight for survival. The airline filed an appeal on Colombian court’s decision to suspend the payout of a major loan that had been already approved. However, the decision to block the loan is based on allegedly controversial details of the financial injection.

The Colombian court blocked the government’s loan, worth $370 million, due to allegedly disclosed controversial deal details of kinship ties between President of Colombia Ivan Duque Marquez and a Senior Executive at Avianca (AVHOQ) (AVH).

The struggling Avianca (AVHOQ) (AVH) filed for bankruptcy under Chapter 11 protection in May 2020. The airline identified an unpredictable impact of the COVID-19 pandemic as the main cause of its collapse.

Fighting-for-survival Columbian airline Avianca is about to get the government's support. Colombian government will lend up to $370 million to the struggling carrier and will participate in the airline‘s restructuring process.