Avianca secures US $ 1.6 billion in commitments to finance its exit from Chapter 11

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https://en.travel2latam.com/nota/69001-avianca-secures-us-16-billion-in-commitments-to-finance-its-exit-from-chapter-11
Avianca secures US $ 1.6 billion in commitments to finance its exit from Chapter 11
Source: Avianca
Thu July 22, 2021

This step represents a key milestone in the restructuring plan that the company will present in the following months


As a result of the continued support of its creditors, Avianca Holdings filed a motion with the Bankruptcy Court seeking approval of the terms of the commitment letters for its $ 1.6 billion Chapter 11 exit financing. The exit financing would be used to replace the current Tranche A and would be converted, at Avianca's option and subject to the fulfillment of certain conditions, into a seven-year exit financing at the time the company emerges from Chapter 11.

Avianca has obtained two financial commitments to replace DIP financing and long-term financing when it emerges from Chapter 11. The first commitment, from a group of financiers that includes many of the current Tranche A DIP creditors, is for US $ 1.05 billion in loans under the new Tranche A-1 of the DIP exit financing. The second, from new financiers, is for US $ 550 million in loans under the new Tranche A-2 of the DIP exit financing.

This new committed financing represents a key milestone in the restructuring plan that the company will present in the coming months to successfully emerge from Chapter 11.

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