Avianca Holdings S.A. and Kingsland Holdings Ltd. have announced they have agreed to withdraw their respective lawsuits filed in the New York State Supreme Court.
Avianca's two major shareholders have been engaged in litigation over the past year concerning a potential joint venture between Avianca and United Airlines (UA, Chicago O'Hare). On the one hand, major shareholder Synergy Aerospace Corporation, which is owned by German Eframovich, has been pushing to finalize a deal while on the other, Kingsland Holdings, which owns TACA International Airlines and is owned by the Kriete family, has actively attempted to deny the deal, claiming that it has been specifically construed by Eframovich to benefit him personally.
However, in a communique issued on Wednesday, November 29, the two parties said they had jointly filed a stipulation with the court dismissing the actions without prejudice.
"As we’ve said all along, Kingsland’s lawsuit was meritless and filed prematurely, and we are pleased that the parties have reached an agreement to dismiss both actions,” Avianca CEO Hernán Rincón said. "Avianca is now looking beyond the litigation, and we are pleased that negotiations with United are progressing. Moving forward, Avianca will continue to focus on serving our passengers, advancing our strategic goals, and developing our business across Latin America.”
Avianca hopes to reach a deal with the US carrier concerning a strategic alliance by the end of the year.
