Viva Air announced the start of its business recovery process (Insolvency Law), in accordance with the regulations that protect companies affected by the Covid-19 crisis, with a view to achieve its permanence in the marketwaiting for the «urgent definition by Aerocivil about its alliance with Avianca».
Viva makes this decision after last February 7 JetSmart expressed its intention to enter into negotiations to acquire 100 percent of the shares of Viva because it has «the resources, capacity and experience to negotiate and close an acquisition in an agile manner.»
(Also read: The pulse between Avianca and JetSmart to buy the airline Viva)
Viva takes advantage of this voluntary recovery process in order to restructure its debts through a negotiation with its creditors
Viva Air assured that this decision is made due to the crisis it is facing by adding the effects of covid-19 and current macroeconomic factors that are public knowledge.
Additionally, the company said that has not been able to access capital during the last nine months since it has not yet been possible to implement its integration with another airline, which is still pending authorization from the National Government.
«Viva takes advantage of this voluntary recovery process that lasts 90 days, in order to restructure its debts through a negotiation with your main creditors to continue operating under sustainable conditions that guarantee the continuity of the company,» the airline said.
(Also read: JetSmart wants to buy all the shares of Viva Air: this is the proposal)
This decision comes after six months of waiting for the definition of the alliance with Avianca, which, if approved, would allow Viva Air – according to what he said – to continue in the low-cost business by linking it to another group of airlines with weight in the region.
After studying all the available alternatives in the face of the current situation, Viva Air demonstrated that it entered this voluntary mediation process while awaiting the «urgent decision by the authority of its alliance with Avianca».
During this construction, Viva will guarantee that it will continue to ensure the continuity of operations and the provision of its services.
