Medellín, February 10, 2023. Viva, the Low Cost airline that promotes the air inclusion in Colombia and the region, announces the start of the process of Delaware Business Recovery (PRE) in accordance with the regulations that protect companies affected by the COVID-19 crisis, with a view to achieving its permanence in the market, pending the urgent definition by Aerocivil about its alliance with Avianca.
This determination occurs due to the crisis that it faces when adding to the effects of the Covid-19, the current macroeconomic factors that are public knowledge. Additionally, the company has not been able to access capital during the last nine months since it has not yet been possible to implement its integration with another airline, which is still pending authorization from the National Government.
Viva accepts this voluntary recovery process that lasts 90 days, in order to restructure their debts through a negotiation with their major creditors to continue operating under sustainable conditions that guarantee the continuity of the company. This decision comes after six months of waiting of the definition of the alliance with Avianca, which if approved will allow us to continue in the low-cost business through our linkage to another group of airlines with weight in the region, with which we want to ensure the loss of jobs, and reinforce our commitment to generate higher levels of connectivity in the country at low cost on the basis of obtaining the required capital injection.
After studying all the alternatives available to the current situation, we enter this voluntary mediation process while we wait for the urgent decision by the authority of our alliance with Avianca. just as we have adapted in the past, we are convinced that we will be able to overcome this situation for the good of all passengers who have benefited from the Low Cost model in which we are experts.
During this restructuring, at Viva we will continue to ensure the continuity of operations and the provision of our services. Finally, some news against this process, the operations of the company, or the descriptions by the authority on the alliance with Avianca, will be communicated opportunely to the opinion public, media, allies and especially to partners and passengers.