Supplier / Ally Information
To Our Valued Partners,
As we continue to navigate the industry challenges resulting from the COVID-19 pandemic, as well as the unique complexities for Avianca, we are taking actions to best position our company for the future. After considering many possibilities to sustain our business through this period and beyond, Avianca voluntarily filed reorganization proceedings under Chapter 11 of the United States Bankruptcy Code. We did so to protect our business as we continue to navigate the effects of the COVID-19 pandemic as well as comprehensively address our debt, aircraft leases and orders and other commitments.
Importantly, Avianca will continue to operate and serve our customers during this process. As the largest airline in Colombia and El Salvador and the second largest in Latin America, we remain steadfast in our commitment to connecting people, families and businesses. We value our relationship with your company and we look forward to continuing to connect our customers to the places and people that they love, with the support of partners like you. We intend to use this process to continue Avianca’s operations, preserve jobs and promote economic recovery in Colombia and its core markets as we focus on maintaining connectivity for our more than 30 million annual passengers with the support of our valued vendors and suppliers.
Here is what you need to know:
- We will pay vendors and suppliers in the ordinary course for goods and services provided on or after the Chapter 11 filing date during this process. Generally, the value of goods and services provided on or after May 10, 2020 (the date Avianca filed for Chapter 11) have priority status under U.S. law. We can and will pay invoices for goods or services ordered by Avianca and received on or after May 10, 2020 in the normal course of business. We remain committed to maintaining productive relationships with our business partners throughout this process.
- We intend to utilize cash on hand, combined with funds generated from ongoing operations (such as cargo), to support the business during this process, while continuing discussions with the Colombian government, as well as those of our other key markets, regarding financing structures that would provide additional liquidity.
- We remain a dependable partner. As government-mandated travel restrictions related to COVID-19 are gradually lifted, we plan to resume our passenger flights and we look forward to welcoming back our employees. Prior to the onset of this global pandemic, we had made significant progress on our “Avianca 2021” plan and we remain committed to our purpose to connect people, families and businesses.
As you may know, the Chapter 11 process is a well-established legal process in the United States of America that is recognized by other countries around the world. The process is a temporary one that, according to United States law, allows a company to reorganize and complete a financial restructuring under the supervision of the U.S. court system. Importantly, this process is not an insolvency proceeding or liquidation. During this process, the Company continues its operations under the oversight of its Board of Directors and management team. Many companies, including many airlines, have used the Chapter 11 process to reorganize their financial obligations and emerge as stronger organizations. Avianca underwent a Chapter 11 process in 2003 that allowed the Company to expand in Latin America.
We are confident that, with government support, we will emerge from this process as a stronger, more efficient airline. We will keep you informed as we make progress in this court-supervised process. If you have any questions, please continue to reach out to your usual Avianca contact.
Court filings and other documents related to the Chapter 11 process in the U.S. are available on a separate website administered by Avianca’s claims agent, Kurtzman Carson Consultants, at www.kccllc.net/avianca. Information is also available by calling (866) 967-1780 (U.S./Canada) or +1 (310) 751-2680 (International), as well as by email at www.kccllc.net/avianca/inquiry.
Avianca has flown the skies for more than 100 years, and we are committed to our purpose to connect people, families and businesses.
We appreciate your partnership and support. #AviancaSeguiráVolando
Case Information and Information Hotline
Court filings and other documents related to the Chapter 11 process in the U.S. are available on a separate website administered by Avianca’s claims agent, Kurtzman Carson Consultants (“KCC”), at www.kccllc.net/avianca.
For more information, customers can click here.
KCC Restructuring Hotline and Email
Toll-free in the U.S. and Canada: (866) 967-1780
International: +1 (310) 751-2680