Legal Services
Milbank
Full Credential Description
Milbank LLP represented Avianca Airlines, the second-largest airline group in Latin America, during its chapter 11 reorganization, which was initiated in May 2020. The airline faced significant challenges due to the financial impact of the COVID-19 pandemic, necessitating a restructuring to stabilize its operations and financial health. Through Milbanks strategic legal guidance, Avianca was able to secure critical short-term financing, which was essential for maintaining liquidity during the restructuring process. The tailored solution provided by Milbank included restructuring Aviancas fleet of leased aircraft to align with a revamped business model, which was crucial for the airlines operational efficiency moving forward. This restructuring effort resulted in the elimination of over $1 billion in net debt, significantly improving Aviancas financial position. Notably, Aviancas chapter 11 process was largely consensual, allowing for a smoother transition through the bankruptcy proceedings. On December 1, 2021, Avianca emerged from chapter 11, becoming the first Latin American airline to do so during the 2020-21 restructuring wave. The successful completion of this process positioned Avianca as a leaner, well-capitalized business, ready to compete effectively in the recovering aviation market for both passenger and cargo .