- The US$ 50 million short term financing commitment evidences Kingsland Holdings' support for the new administration and the "Avianca 2021" strategic plan. The commitment is intended to strengthen Avianca Holdings S.A.' (the "Company") financial position, while making continuous progress in re-profiling the Company's debt obligations.
- United Airlines Inc. and Kingsland have reiterated their willingness to provide up to US$ 250 million in financing to the Company, upon the successful completion of its debt re-profiling, as announced in previous communications and consistent with the "Avianca 2021" plan.
BOGOTÁ, Colombia, Aug. 30, 2019 /PRNewswire/ -- Kingsland Holdings Limited, further strengthens its support for the Company and its strategic "Avianca 2021" plan, as it commits to extend a short-term loan of US$ 50 million to the Company. This temporary loan further reinforces the commitment of Kingsland and United Airlines Inc. to provide up to US$ 250 million in long-term financing to the Company once the process of re-profiling its financial obligations is concluded, in line with the implementation of the strategic Avianca 2021 plan.
Roberto Kriete, Chairman of the Board of Directors of the Company and controller of Kingsland Holdings commented: "Together with United Airlines Inc., we have placed great confidence in the Board of Directors and in the new administration led by Anko van der Werff in successfully executing the transformation of the Company. We are committed to not only support the Company financially but also by assembling a team of industry experts, who have great passion for this airline. I am sure that the Company will become the best airline in Latin America in the future. We have the team to achieve it."
On the other hand, Anko van der Werff, CEO of the Company, said: "This loan will strengthen the working capital position of the Company while we execute the company's debt re-profiling and further demonstrates Kingsland Holding's commitment to the Company. The "Avianca 2021" plan is already showing positive results, as such we continue to count on the support of our stakeholders Kingsland Holdings and United Airlines Inc., throughout this process."
About Avianca Holdings:
Avianca is the commercial brand that identifies the passenger and cargo transportation airlines integrated in the Holding. With a human team of 21,000 employees, Avianca serves 76 destinations directly in 27 countries in America and Europe. On February 22, 2019, the Holding announced its transformation plan, with the purpose of migrating from an accelerated growth model to one of profitability and competitiveness, thanks to actions such as the sale of non-strategic business units, adjustments to its route networks allowing the company to focus on higher demand and greater profitability routes, the re-negotiation of fleet incorporation with Airbus, among other actions. On May 24, control of the company was assumed by Kingsland Holding Limited as an independent third party of United Airlines.
Kingsland Holdings Limited is a stakeholder of Avianca Holdings with 40 years of aviation experience. Kingsland is chaired by Roberto Kriete, who has been part of the Board of Directors of Avianca Holdings S.A. since 2010. He was the founder of Volaris, a pioneer of TACA and president of the Latin American Air Transport Association.