Avianca starts conversations with investors

The Avianca hired Galeazzi & Associates, consulting firm specializing in restructuring of companies and known to carry out drastic cuts costs, to support her financially in your recovery process. The Galeazzi already has participated in the renegotiation of the airline's debts with creditors and in conversations with potential investors, including the Elliott Fund. According to sources close to the Avianca, three investors are looking at the possibility of making a contribution in the company. The Bloomberg News Agency was informed last Friday that the Fund Elliott is one of the coming negotiating – information that was confirmed by the State. Elliott, the American billionaire Paul Singer, is known for buying troubled companies-looked the operator Hi, for example. He was also a background Singer to acquire Argentina's debt, in 2002, after the country have given default. Managed, 14 years later, receive up to 15 times the amount initially invested. The State has found, however, that the conversations with Elliott are still in the early stages. An injection of capital would give a relief to the company, which was the only one of the national airline didn't receive contribution in recent years. In 2018, the companies suffered from the high of the dollar and oil, in addition to falling demand due to the truckers ' strike. The Galeazzi and the Avianca contract closed just before the new year and, since early January, three officials of the consultancy work within the airline. According to a source that accompanies the work, is being considered which will be the ability to pay of the Avianca after the process of reduction of the company's operations-the fleet will decrease from 57 to 38 aircraft. In reorganization since December, Avianca has almost R $500 million in debts and is fighting in court to not miss their planes. She has until Feb. 1 to present a proposal to pay companies that lease the aircraft. If it is not closed any deals until that date, Justice may decree the repossession of the aircraft automatically. Last week, the company announced the end of three of its main international flights and the return of two aircraft were carrying out these routes. Sought, Avianca and Galeazzi doesn't have spoken. The report failed to contact with Elliott.