Colombian airliner Avianca successfully reorganization

A logo of Avianca is pictured at the headquarters building in Bogota.

A U.S. court approved the reorganization process on Wednesday, as a result of BOGOTA Reuters Colombian airliner Avianca's Chapter 11 bankruptcy process.

The prior conditions were completed today, the airliner said in a statement from Bogota. Avianca has emerged successfully from this process. Avianca and its rival, Chile's LATAM Airlines, were the two largest carriers in the region before the coronavirus epidemic, but both were sent into bankruptcy restructuring when the virus interfered with air travel in the region, as well as strict restrictions in Latin America.

Avianca had already suffered several years of losses before the epidemic began, and went through a boardroom coup in 2019 led by United Airlines.

The Southern District of New York approved the company's reorganization plan in early November, a day before Avianca announced it would move its domicile to Britain and its stock will no longer be traded on the Colombian stock exchange.

The airline has said that until its principle domicile is established in Britain, the company will be known as Avianca Group International Ltd. Its current shareholders will not receive any payout or be included as shareholders in Avianca Group.