Colombian airline Avianca files Chapter 11 in US
Reuters, 03.21.03, 10:13 AM ET
BOGOTA, Colombia(Reuters) - Colombian airline Avianca and its U.S. subsidiary Avianca Inc. have filed for Chapter 11 bankruptcy protection in the United States in order to renegotiate $130 million in debt, the president of Alianza Summa, which includes Avianca, said Friday.
The company will also cut some routes to cope with the effects of rising fuel prices, more expensive insurance premiums and falling demand, Summa's president, Juan Emilio Posada, told Reuters.
"The protection could last for months or years. We hope that in approximately eight months we will emerge again from the protection offered by Chapter 11," Posada said.
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