Colombian flag carrier Avianca has attracted several parties interested in acquiring an equity stake in the airline, after last week gaining another extension to a deadline imposed by New York's South District Court for the submission of its restructuring plan. Languishing under $289 million of debt to US creditors, aggravated by heavy domestic liabilities that raise its total debt to $346 million, Avianca last year gained bankruptcy protection from the US courts. Since then the airline has undergone substantial fleet, route and staff cuts as it attempts to restructure.
However, with the airline's management having failed to disclose details of the plan and the identities of interested investment groups, Avianca's creditors are pressing for a quick solution.
Several foreign airlines have tendered proposals to buy a stake in Avianca. It is understood that the leading proposal was submitted recently by US carrier Continental Airlines, in partnership with Panamanian carrier Copa, which will be reviewed by Avianca's main shareholders - Valores Bavaria and the National Coffee Federation. Local analysts believe that a purchaser is being sought for Avianca, rather than a partner.
Source: Flight International
