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BOGOTA (Reuters) – Low-cost Colombian airline Viva Air has voluntarily began a neighborhood debt restructuring course of, the corporate stated late on Friday, because it awaits authorization of its merger with Avianca airways.
Viva Air stated in a press release that it made the choice to begin the Enterprise Restoration Course of (identified by the Spanish acronym PRE) because of the challenges from the present financial local weather and from the influence of the COVID-19 pandemic.
“The corporate has not been capable of entry capital over the past 9 months because it has not but been capable of finalize its merger with one other airline, which continues to be pending authorization from the Nationwide Authorities,” the airline stated.
“Viva accepts this voluntary restoration course of that lasts 90 days, with a purpose to restructure its money owed by negotiation with its principal collectors to proceed working beneath sustainable circumstances,” it added.
The airline stated it entered the method after a lot consideration, because it awaits a call on the Avianca merger. Its monetary scenario has been aggravated by the rise in gas costs final 12 months and the devaluation of the Colombian peso.
The announcement got here after ultra-low-cost airline JetSMART Airways additionally introduced its intention to purchase 100% of Viva Air.
Colombia’s Civil Aeronautics group objected in November to a merger between Avianca and Viva, arguing that it represented an anticompetition threat.
The airways filed an attraction and in January the aviation governing physique annulled the merger course of citing procedural irregularities, and restarted it.
Viva, which has operations in Colombia and Peru, has a fleet of 23 plane and a few 1,000 direct workers.
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