BOGOTA (Reuters) - Latin American airline Avianca AVT_p.CN said on Monday it will receive a $200 million loan from controlling shareholders United Airlines and Kingsland Holdings Limited after it successfully exchanged hundreds of millions of dollars in bonds.
The struggling airline can receive up to $175 million in additional financing from shareholders and other third parties, Avianca said in a statement to Colombia’s financial regulator.
United and Kingsland agreed to the loan, which should be made by around Oct. 15, on condition of a successful bond exchange which took place last month.
United launched a management overhaul at Avianca in May, removing top shareholder German Efromovich from controlling the cash-strapped airline.
Reporting by Julia Symmes Cobb; Editing by Tom Brown