FILE PHOTO – AVIANCA airplanes are seen on the tarmac during a presentation ceremony of a new aircraft at Monsenor Oscar Arnulfo Romero International Airport in San Luis Talpa, El Salvador, May 7, 2018. REUTERS/Jose Cabezas
November 30, 2018
(Reuters) – United Continental Holdings <UAL.N> is close to partnering with Avianca Holdings SA <AVT_p.CN>, as the U.S. airline company agrees to pay off debt owed by the Latin American carrier to a hedge fund, the Wall Street Journal reported on Friday.
United will lend money to German Efromovich, the controlling shareholder of the Colombian flagship airline, and the funds would be used to repay a loan from Elliott Management Corp, according to the report, which cited people familiar with the matter.
Avianca shares controlled by Efromovich will be put up as collateral for the loan.
United was not available for comment, while Avianca declined to comment when contacted by Reuters.
(Reporting by Ankit Ajmera in Bengaluru)
