Today Avianca Holdings affirmed its strategic plans to explore an alliance with United Airlines and to seek a capital infusion through an equity offering to its shareholders.
In New York State Court, the company filed a lawsuit against Kingsland and board member Roberto Kriete to stop their improper actions aimed at blocking Avianca’s progress. In addition, Avianca filed a motion to dismiss all of Kingsland’s claims made in a lawsuit earlier this month and opposed Kingsland’s motion for an injunction to stop the United negotiations.
Avianca’s legal papers detail Kingsland’s attempts to block Avianca from having negotiations with United about entering into a strategic commercial alliance, a critical component of the Company’s strategy to become the leading Latin American airline. The proposed commercial partnership Avianca is negotiating with United, a world-class airline, would provide important growth opportunities and valuable synergies for Avianca.
Avianca’s legal papers also demonstrate that Avianca has at all times performed its role under the parties’ shareholder agreement, while Kingsland has explicitly breached its obligations. Avianca points out that Kingsland’s legal maneuvers are a heavy-handed attempt to obtain greater rights in the courtroom than it previously negotiated for and agreed to in the parties’ shareholder agreement.
Avianca’s suit asks the court for an order preventing Kingsland from any further dissemination of the Company’s confidential information, requiring Kingsland to comply with the dispute resolution section of the parties’ shareholder agreement, and requiring Kingsland’s representatives to cease interfering with the shareholder agreement. The Company also requested that the court dismisses Kingsland’s meritless lawsuit.
Hernán Rincón, Avianca’s CEO said:
“Our Company is committed to its passengers and the development of its business across the continent. Our strategy is focused on superior service and operational excellence, to offer our clients the best choices and more opportunities to travel. We are looking beyond the litigation. We remain committed to achieving its two strategic objectives approved by the Board: entering into a commercial alliance with a world-class airline and raising needed new capital.”