Avianca Owes $4 Million in Plane Lease Fees, Second Circuit Says

Avianca Holdings SA remains on the hook for $4.3 million in additional airplane lease payments that arose during the Colombian airline’s bankruptcy, a federal appeals court affirmed.

Avianca failed to act in its Chapter 11 case before debts to brokerage firms Burnham Sterling & Co. and Babcock & Brown Securities LLC became due, the US Court of Appeals for the Second Circuit ruled Monday, affirming two lower courts.

The liabilities stem from deals inked before Avianca filed for bankruptcy in New York in 2020, in which the airline agreed to pay Burnham and Babcock “additional rental payments” on a fixed ...