Bankrupt Avianca Sees Governments as Key in Restructuring

Avianca Holdings SA expects the Colombian government to play a key role in its restructuring efforts after widespread travel bans forced it to declare bankruptcy, according to court documents.

Latin America’s second-largest air carrier, which filed for Chapter 11 protection Sunday, said that due to its importance in the Colombian domestic air travel network, the government “may be one of the key stakeholders” as it reorganizes. The governments of El Salvador, Ecuador, and, potentially, Peru, may also play a role, Chief Financial Officer Adrian Neuhauser wrote in a declaration to the court, without elaborating on the type of aid it ...