Avianca Holdings files for Chapter 11

Avianca Holdings says it filed for Chapter 11 bankruptcy protection in the Southern District of New York on Sunday, May 10, citing the “unforeseeable” impact of the COVID-19 pandemic. A corresponding suspension of scheduled passenger operations as of March has eroded the firm’s consolidated revenue by over 80% and placed significant pressure on its cash reserves especially given a USD65 million bond payment that was due on May 10.