10/19/2021 | Press release | Distributed by Public on 10/19/2021 15:24
Bogotá D.C., October 19, 2021. Avianca Holdings S.A. (OTCMKTS: AVHOQ, BVC: PFAVH) ("Avianca" or the "Company") informs that, in accordance with the Company's disclosure on September 14, 2021, in the context of the Company's Chapter 11 proceedings, the Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") has, among other matters: (i) approved the disclosure statement (the "Disclosure Statement") for the proposed plan of reorganization (the "Plan") for the Company or any of its affiliated debtors in the Chapter 11 proceedings (the "Debtors"), (ii) authorized Avianca to distribute the Disclosure Statement and to solicit votes on the Plan from certain classes of creditors, and (iii) approved the Company's entry into and performance under, the Equity Conversion and Commitment Agreement (the "ECCA"), dated September 1, 2021, by and among the Company, certain of its subsidiaries, and each of Avianca's "Tranche B" Lenders under the Company's outstanding DIP Credit Agreement.
Based on the above, the Company reiterates, once again, as disclosed to the market on the dates set forth in Table A (below) that in case the creditors approve the Plan and the Bankruptcy Court thereafter confirms the Plan on terms consistent with the ECCA, the Company's current shareholders (including ordinary shareholders and preferred shareholders) will not receive any distribution. As a result of the foregoing, under the Plan, the value of the outstanding shares of the Company is expected to be reduced to zero, due to the decrease in equity of the Company attributable to the Debtors' liabilities to third parties and creditors, as well as the capital injection by new investors as contemplated by the Plan and the ECCA.
The Company clarifies, that neither the US Bankruptcy Code nor the Plan allow current shareholders to recover any value for their shares in the Company given the facts and circumstances of the Company. Likewise, Avianca reiterates that the terms of the ECCA apply to the reorganized entity that will emerge from Chapter 11 and will not benefit the Company or its current shareholders. As such, current shareholders will not receive any distribution under the Plan nor will their shares be transferred to the reorganized company.
Avianca also reiterates, once again, that it is not aware of any other facts or material information (other than those previously disclosed to the market pursuant to the applicable information mechanisms) which may be the cause of any variation or volatility in the price of the Company's shares.
The Company reminds the market that the Bankruptcy Court has set a hearing to consider approval of the Plan for October 26, 2021 at 10 a.m. (Eastern Time). The Company clarifies that the Bankruptcy Court (i) set October 15, 2021 at 4 p.m. (Eastern Time) as the deadline to submit votes in respect of the Plan (not October 14, 2021, as previously disclosed) and (ii) confirmed October 19, 2021 at 4 p.m. (Eastern Time) as the deadline to object to the Plan.
|May 20, 2020||September 24, 2021||October 12, 2021|
|April 14, 2021||September 27, 2021||October 13, 2021|
|July 22, 2021||September 28, 2021||October 14, 2021|
|September 1, 2021||September 29, 2021|
|September 14, 2021||September 30, 2021|
|September 15, 2021||October 01, 2021|
|September 16, 2021||October 04, 2021|
|September 17, 2021||October 05, 2021|
|September 20, 2021||October 06, 2021|
|September 21, 2021||October 07, 2021|
|September 22, 2021||October 08, 2021|
|September 23, 2021||October 11, 2021|
Avianca has included statements in this press release that constitute "forward-looking statements". As a general matter, forward-looking statements are those focused on future or anticipated events or trends, expectations and beliefs, including, among other things, the Company's expectations with respect to its Chapter 11 proceedings, the airline industry and the further impacts of the COVID-19 pandemic. Such statements are intended to be identified by words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "project," "plan" and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon the Company's then-current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward-looking statements.
Forward-looking statements in this press release are not guarantees of future performance and involve risks and uncertainties, including with respect to the Chapter 11 process, related negotiations and hearings before the Bankruptcy Court, as well as the COVID-19 crisis. Actual results may differ materially from those projected in this press release for numerous reasons, including factors outside of the Company's control. The Company expressly disclaims any obligation to update or revise this press release, including any forward-looking statements, whether as a result of new information, future events or otherwise.
Luca Pfeifer, Head of Investor Relations
(+571) 587 7700
U.S. and Europe Media Contact
Viviana Escobar, Corporate Communications
Joele Frank, Wilkinson Brimmer Katcher:
+1 212 355 4449
Colombia, Central America and South America Media Contact
Maria Carolina Cortes, Corporate Communications
Pursuant to the requirements of the U.S. Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: October 19, 2021
|AVIANCA HOLDINGS S.A.|
/s/ Richard Galindo