RIO DE JANEIRO, BRAZIL – The auction of Avianca’s assets ended with three lots bought by Gol, two by Latam and two others without bids.
The sale of the assets totaled R$ 174 million (US$43.5 million).
Currently under judicial restructuring, Avianca Brasil placed the assets up for bidding on Wednesday, July 10th, including landing and takeoff rights (“slots”), even after a court had authorized the National Civil Aviation Agency (Anac) to reallocate them between other airlines.
The auction was regarded as crucial for the company to raise the necessary funds to avert bankruptcy.
The result, however, may be challenged in the future because of pending legal issues regarding the company’s eligibility to include the slots among the auctioned assets.
The settlement of bids is conditional upon the ratification of the auction by the courts.
Only Gol and Latam took part in the auction. Azul was also eligible, but did not attend “because it did not believe in the legitimacy of the procedure,” it said in a statement.
The company also stated that the dispute for assets did not stimulate the participation of competitors and said it had “confidence that the Brazilian regulatory agencies will bring a solution that stimulates greater competitiveness in the sector.”
The unsold assets will be discussed again between creditors and the company.
The company subdivided its assets into seven “Isolated Productive Units (IPUs)”, which were auctioned in separate lots.