Avianca receives up to 370m USD from government

The Colombian Treasury Department announced that the government will loan Avianca Holdings (NYSE: AVH) up to $ 370 million to help reorganize the airline as part of the US Chapter 11 bankruptcy process. The country's emergency fund management committee approved the government-secured loan due in November 2021 and will be assessed and finalized by the judge responsible for bankruptcy in the US. The company provides the Colombian economy with 500,000 direct and indirect jobs and around 14.6 T pesos / year (3.8 billion dollars), which according to the ministry is ~ 1.4% of the gross domestic product. Avianca filed for Chapter 11 bankruptcy in May after travel bans across Latin America forced the airline to keep its fleet on the ground.