Avianca's new owner
German Efromovich might have been a poster child for rags-to-riches entrepreneurs. As a young man he washed dishes in New York restaurants while meeting potential investors in the lobbies of five star hotels where he did not stay. One of those meetings led to an investment that eventually led to ownership of South America's oldest airline, Avianca.
Efromovich is president and principal owner of Brazil's Sinergy Group, a petroleum and transport conglomerate that has agreed to inject $63 million in new equity into Avianca in return for a 75% stake. It follows the self-made entrepreneur's pattern of buying distressed companies at bargain prices, keeping existing staff and rebuilding with their help. By all indications, he plans to do the same at Avianca.
Known for a willingness to get his hands dirty, Efromovich says he plans to play an active role in Avianca's strategic direction. He admits to having little aviation experience, although one of Sinergy's subsidiaries is OceanAir, a Brazilian regional he formed six years ago to serve the oil industry. It has since expanded its fleet and network, with 10 turboprops serving 30 towns within Brazil.
The oil business brought Efromovich to Colombia, where one of his companies now pumps 5,000 barrels of crude oil per month. That led him to meetings with Valores Bavaria and Colombia's Federation of Coffee Growers, Avianca's owners. Secretly, they negotiated the deal with Avianca's creditors and the New York bankruptcy court to take over the carrier.
Avianca emerged from US Chapter 11 bankruptcy protection in December.
DAVID KNIBB SEATTLE
Source: Airline Business
