Avianca Seeks $2 Billion in Loans as Air Travel Crisis Lingers

Avianca Holdings SA said it has reached agreements with lenders for a “substantial” part of the $2 billion it is trying to raise as it restructures after the Covid-19 air travel crisis forced it into bankruptcy.

Latin America’s second-largest airline is seeking term loans that would provide it with $1.2 billion in new funds and roll up some existing debts, according to a regulatory filing Thursday. The transaction would consist of a senior and a subordinate tranche, both secured by a lien on all available collateral.

Goldman Sachs Lending Partners LLC and JPMorgan Chase Bank, N.A. have been engaged by...