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Infographic: the steps to understand the new situation of Avianca and his voluntary entry into Chapter 11 to reorganize and business restructuring.
Como muchos habrán visto y como una de las noticias «bomba» que ha tenido la industria aérea dentro de la cuarentena y suspensión de vuelos comerciales a nivel mundial y que tuvo a Avianca as protagonist, It is important to clarify several points regarding this new situation of the airline.
Before entering and analyzing an interesting infographic that Avianca shared with the press, It is important to clarify from the outset that the airline continues and will continue to operate, has not closed nor will it close and precisely the intention of all these actions is to ensure and guarantee its continuity for 100 More years.
Information about the Chapter 11 and the Avianca process
It is important to clarify what the Chapter process is. 11, what it entails and what it doesn't, Above all, inform that it is a fairly common process in the world when an airline requires a break from its creditors and imminent payments to them..
¿Qué es un proceso de Capítulo 11?
The most important, This process does not imply a liquidation or closure of the airline, even remember the well-known case of American Airlines, which in 29 November 2011 entry into this same process and we can see it currently operating in a solid and growing manner..
¿Qué logrará este proceso?
¿Por qué Avianca solicitó la protección del Capítulo 11 in the United States instead of Latin America?
Chronology of Chapter milestones 11
Below is a brief chronology of the main steps that usually occur when a company is in the Chapter process. 11. This process can take 12 a 18 months depending on the company and its plan.
In conclusion, Avianca will continue flying and even, After this long process of more than 18 months, It should come out stronger in the operational and economic areas.
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Hi Nicolas
I have tried to find out what happens with the shareholders., It is not mentioned anywhere, look for information on companies that joined and there is only a record of the stock markets one or two years after having joined the chapter 11, examples of GM or American airline.
Do shareholders lose everything invested once the process is completed??
That is a good question, I understand that the shareholders have no impact, more is with creditors like banks, where to negotiate.
Hello Nicolas, good afternoon., I would like to know what you think will happen with Avianca in the future.? Well, as we know, Covid was the final blow to declare bankruptcy. Apart from this, domestic flights will not be possible until July and international flights until September., In your vast experience, do you believe that the airline can survive this debacle??
Definitely, survive, Even entering into restructuring will allow you to emerge stronger by renegotiating your debts.