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Brazil: Bankrupt Avianca splits bids

 |  April 3, 2019

Brazilian airline Avianca Brasil plans to split into seven units that it will auction off separately, with rivals LATAM Airlines and Gol Linhas Aereas Inteligentes both planning to bid for some of those parts in a bankruptcy auction, reported Reuters.

The plan to split up the carrier, filed in a Brazilian court on Wednesday, April 3, is a significant departure from a previous proposal and adds fresh competition for some of the most-coveted airport slots in Brazil. But it also shuts the door on a previous offer by competitor Azul SA.

Azul signed a preliminary agreement this month to pay at least US$105 million for a selection of Avianca Brasil’s assets, a proposal that had been considered a coup by analysts who saw it as a way for Azul to challenge its bigger competitors: LATAM and Gol.

Azul also last month gave Avianca Brasil a much-needed cash injection of 31.6 million reais (US$8.21 million) after it fell behind on its payroll.

Full Content: Reuters

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