October 7, 2020
Colombia's Avianca said Monday that a US bankruptcy court has approved $2 billion in debtor-in-possession (DIP) financing, clearing another hurdle in the airline's Chapter 11 proceedings.
As Avianca said when it submitted the plan in September, the DIP financing involves $1.27 billion in one tranche and $722 million in another. It also includes roughly $1.2 billion in new funds with $881 million in the first tranche and $336 million in the second.
The first tranche charges Libor plus 10.5%, but
Colombian airline fulfills another requirement in its Chapter 11 bankruptcy proceedings