May 10, 2020 / 5:19 PM / a month ago

BRIEF-Avianca Says Filed Voluntary Petitions Under Chapter 11 In U.S. Bankruptcy Court

May 10 (Reuters) - Avianca Holdings SA:

* AVIANCA HOLDINGS INITIATES VOLUNTARY REORGANIZATION PROCEEDINGS

* CERTAIN OF ITS SUBSIDIARIES & AFFILIATES TODAY FILED VOLUNTARY PETITIONS UNDER CHAPTER 11 IN U.S. BANKRUPTCY COURT

* LIFEMILES, AVIANCA’S LOYALTY PROGRAM, IS ADMINISTERED BY A SEPARATE COMPANY AND IS NOT PART OF CHAPTER 11 FILING

* COMPANY CONTINUES DISCUSSIONS WITH GOVERNMENTS REGARDING FINANCIAL SUPPORT

* FILING WAS NECESSITATED BY UNFORESEEABLE IMPACT OF COVID-19 PANDEMIC

* ITS SCHEDULED PASSENGER OPERATIONS HAVE BEEN GROUNDED SINCE MID-MARCH, REDUCING ITS CONSOLIDATED REVENUE BY OVER 80%

* HAS PRESENTED VARIOUS MOTIONS BEFORE COURT IN SUPPORT OF ITS REORGANIZATION, EXPECTS COURT TO DECIDE ON THESE REQUESTS IN COMING DAYS

* HAS REQUESTED AUTHORITY TO PAY CERTAIN PREPETITION EMPLOYEE WAGES, COMPENSATION AND BENEFIT OBLIGATIONS OWED FROM BEFORE FILING DATE

* AVIANCA - INTENDS TO PAY VENDORS, SUPPLIERS, TRAVEL AGENCY PARTNERS IN FOR GOODS, SERVICES PROVIDED ON OR AFTER FILING DATE DURING CHAPTER 11 PROCESS

* AVIANCA INTENDS TO COMMENCE A WIND-DOWN OF ITS OPERATIONS IN PERU PURSUANT TO LOCAL LAWS Source text for Eikon: Further company coverage:

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