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(-) – United Airlines mentioned on Friday it had began a administration overhaul at Colombia’s Avianca Holdings, eradicating prime shareholder German Efromovich from controlling the cash-strapped airline.
The transfer follows a default by Efromovich’s holding firm BRW Aviation on a $456 million mortgage United had made as a part of a proposed three-way partnership with Avianca and Panama’s Copa.
United, a part of United Continental Holdings Inc, is searching for a deeper foothold in Latin America, which is taken into account ripe for air journey development.
United’s mortgage was backed by Efromovich’s 51.5% stake in Avianca. However, the U.S. airline’s contract with its pilots restricts the corporate from majority possession in one other provider. As a consequence, United is ceding voting rights to Kingsland Holdings, the Colombian provider’s second-largest shareholder.
In a regulatory submitting on Friday, United additionally mentioned it was prepared to mortgage Avianca as much as $150 million if wanted and requested, topic to circumstances.
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