NEW YORK & BOGOTÃ, Colombia--(BUSINESS WIRE)--
Today Avianca Holdings S.A. (Avianca or the Company) affirmed its strategic plans to explore an alliance with United Airlines and to seek a capital infusion through an equity offering to its shareholders. In New York State Court, Avianca filed a lawsuit against Kingsland Holdings Ltd. (Kingsland) and board member Roberto Kriete to stop their improper actions aimed at blocking Avianca’s progress. In addition, Avianca filed a motion to dismiss all of Kingsland’s claims made in a lawsuit earlier this month and opposed Kingsland’s motion for an injunction to stop the United negotiations.
Avianca’s legal papers detail Kingsland’s attempts to block Avianca from having negotiations with United about entering into a strategic commercial alliance, a critical component of the Company’s strategy to become the leading Latin American airline. The proposed commercial partnership Avianca is negotiating with United, a world-class airline, would provide important growth opportunities and valuable synergies for Avianca.
Avianca’s legal papers also demonstrate that Avianca has at all times performed its role under the parties’ shareholder agreement, while Kingsland has explicitly breached its obligations. Avianca points out that Kingsland’s legal maneuvers are a heavy-handed attempt to obtain greater rights in the courtroom than it previously negotiated for and agreed to in the parties’ shareholder agreement.
Avianca’s suit asks the court for an order preventing Kingsland from any further dissemination of the Company’s confidential information, requiring Kingsland to comply with the dispute resolution section of the parties’ shareholder agreement, and requiring Kingsland’s representatives to cease interfering with the shareholder agreement. The Company also requested that the court dismiss Kingsland’s meritless lawsuit.
Hernán Rincón, Avianca´s CEO said, “Our Company is committed to its passengers and the development of its business across the continent. Our strategy is focused on superior service and operational excellence, to offer our clients the best choices and more opportunities to travel. We are looking beyond the litigation. Avianca remains committed to achieving its two strategic objectives approved by the Board: entering into a commercial alliance with a world-class airline and raising needed new capital."
About Avianca Holdings S.A.
Avianca Holdings S.A. (NYSE: AVH) (BVC:PFAVH) comprises the airlines: Aerovías del Continente Americano S.A. Avianca (Avianca), Tampa Cargo S.A.S., incorporated in Colombia, Aerolineas Galapagos S.A. - Aerogal, incorporated in Ecuador, and the TACA Group companies: TACA International Airlines S.A., incorporated in El Salvador, Lineas Aereas Costarricenses S.A., LACSA, incorporated in Costa Rica, Trans Américan Airlines S.A., incorporated in Perú, Servicios Aéreos Nacionales S.A., SANSA, incorporated in Costa Rica, Aerotaxis La Costeña S.A., incorporated in Nicaragua, Isleña de Inversiones S.A. de C.V., ISLEÑA, incorporated in Honduras and Aviateca S.A., incorporated in Guatemala.
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