Court Blocks Colombia’s $370 Million USD Emergency Loan To Bankrupt Avianca Airlines

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Friday night, a three-judge panel in the Cundinamarca Administrative Court issued a 13-page order blocking the Colombian government’s decision to loan $370 million USD to Avianca Airline, the largest air operator serving Colombia, now in Chapter 11 Bankruptcy proceedings in the United States. Cundinamarca is the department and administrative region surrounding Colombia’s capital of Bogotá.A citizen’s lawsuit was filed by a Jonathan Ruíz Tobon to block the loan as a threat to public resources, and that the government’s hasty loan to a bankrupt entity with those bankrupt proceedings taking place in a foreign country do not provide adequate guarantees to safeguard public assets. As of press time, Finance Colombia has been unable to ascertain the identity or background of Mr. Ruiz.Avianca officials refused comment when contacted Saturday by Finance ColombiaThe lawsuit also sought to compel the government to disclose proof that there was no conflict of interest due to the fact that Colombian President Ivan Duque ordered the loan, while his own sister, María Paula Duque is Avianca’s “Senior Vice President of Strategic Relations and Customer Experience.” The suit additionally sought documentation on the due diligence performed in light of the revelations that the firm …

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