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Colombia’s Avianca to move domicile to the United Kingdom -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The exterior of Avianca’s administrative office can be seen as Colombian attorneys general conduct an inside raid in Bogota on February 12, 2020. REUTERS/Luisa Gonzalez

BOGOTA, (Reuters) – Airline Avianca Holdings will relocate its headquarters to the United Kingdom. The company also announced Wednesday that its stock would no longer trade on the Colombian stock market. This announcement came a day after a U.S. court approved the restructuring plan.

The flag carrier of Colombia had applied for Chapter 11 bankruptcy before a U.S. court, New York, in 2020. It was filing amid the pandemic coronavirus. After receiving $2 billion of new financing through a debt-for equity deal, it expects to be out of the matter by 2021.

Avianca Group International Ltd. will take over the business once its principal domicile has been established in the UK.

The airline didn’t say why they were moving their domicile or why Britain was chosen.

On Wednesday, the Colombian Stock Exchange suspended trading Avianca shares. The stock had close at 42.5 Pesos (0.01 cents per share) Tuesday. Avianca stated that it expects its Columbian listing will be cancelled.

Avianca’s business plan approves all aspects of the operation. This includes destinations, planes, and how it will service customers.

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