After several requests for help and the denial of its integration with Avianca, Viva announced this Friday, February 10, that it started a Business Recovery Process (PRE)in order to avoid bankruptcy of the company.
(Viva Air is benefiting from a special insolvency process).
This extrajudicial rescue procedure, contained in the Decree 560 of 2020 and in regulatory decree 842 of 2020allows businessmen affected by the decrease in activities and income due to the covid-19 pandemic to sign payment agreements with their creditors to meet their obligations, and preserve their economic activity to protect employment.
This decree establishes special measures in insolvency proceedings against those companies that, within the framework of the state of social and ecological emergency of the covid-19, found themselves immersed in causes and situations of financial infeasibility.
This voluntary business recovery process lasts 90 days in which the company must restructure its debts through a negotiation with its main creditors to continue operating under sustainable conditions that guarantee the continuity of the company.
(How many companies have declared insolvency in 2022).
During the process, the processes of execution, coercive collection, restitution of possession and execution of guarantees.
“This determination is made due to the crisis that it faces by adding to the effects of covid 19, the current macroeconomic factors that are public knowledge. Additionally, the company has not been able to access capital during the last nine months since it has not yet been possible to implement its integration with another airline, which is still pending authorization from the National Government.indicated Viva, after announcing its recovery plan.
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