WSJ: United nears deal on Avianca loan, partnership

Nov. 30, 2018 2:39 PM ETUnited Airlines Holdings, Inc. (UAL)CPA, UAL, AVHBy: Carl Surran, SA News Editor2 Comments
  • United Continental (UAL +1.1%) is in the final stages of sealing a deal to partner with Latin American carrier Avianca (AVH +7.6%) by agreeing to an unusual arrangement to pay off debt owed to a hedge fund, WSJ reports.
  • UAL in effect would lend money to German Efromovich who owns just over half of AVH, the funds would be used to repay a loan from Elliott Management, and the AVH shares controlled by Efromovich would be put up as collateral for the loan, according to the report.
  • As part of the deal, the airlines reportedly would form a three-way joint business agreement with Panama-based Copa Holdings (CPA +0.8%) to integrate service and coordinate pricing and schedules on their networks between the U.S. and Latin America.

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