United Airlines has agreed to give a $200 million loan to struggling Latin American airline Avianca.
United and fellow shareholder Kingsland Holdings Limited will disperse the loan after a successful bond exchange was completed, Avianca said in a statement to Colombia’s financial regulator.
Under the terms, Avianca may receive up to $175 million more in financing from shareholders and other third parties.
"United congratulates Avianca Holdings on this important step in its Avianca 2021 plan. We look forward to Avianca’s successful achievement of agreements with its other stakeholders, and to working together with Avianca," said John Gebo, United’s senior vice president of Alliances.
Fellow shareholder Kingsland Holdings Limited is chaired by Roberto Kriete, who has been an Avianca board member for nearly a decade.
He was the founder of Volaris, and president of the Latin American Air Transport Association.
"We look forward to the successful conclusion of the company’s debt reprofiling initiative, and working with management to support the success of the Avianca 2021 plan," Kriete said.
