October 7, 2019 / 5:12 PM / 15 days ago

Avianca to get $200 million loan promised by United, Kingsland

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

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