May 24, 2019
(Reuters) – United Airlines said on Friday it was willing to loan up to $150 million to Colombian airline Avianca Holdings SA.
In November, United Continental Holdings Inc finalized a three-way joint venture with carriers Avianca and Copa Airlines of Panama, giving the U.S. airline a deeper foothold in Latin America.
Under the deal, United had loaned $456 million to cash-strapped Avianca’s parent company, Synergy Group Corp.
Avianca’s majority shareholder, BRW Aviation LLC – one of the companies that United entered into a loan with – has defaulted, according to a regulatory filing on Friday.
Kingsland Holdings Ltd, Avianca’s largest minority shareholder, has been granted independent voting rights to manage BRW.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Anil D’Silva)