Avianca exchanges $475 million in bonds amid financial problems

Avianca Holdings will exchange $475.2 million in bonds as part of a plan to change its financial fortunes. Avianca Holdings has said that 86.4% of the outstanding principal of its $550 million bonds due May 2020 have been validly tendered. In a statement to Colombia’s financial regulator, Avianca said it would extend the deadline for bondholders to exchange their paper until 25 September, in a bid to exchange a total of $550 million worth of bonds coming due next year.  The airline, which is owned by United Airlines and Kingsland Holdings Limited, is set to change its capital structure amid