Avianca Holdings has announced it is on the cusp of securing a USD50 million loan from an affiliate of its minority shareholder, Kingsland Holdings.

The Panama-based holding company said in a stock market disclosure that it had entered into a commitment with the firm over a short term secured loan of USD50 million. Execution of the deal is, however, subject to customary closing conditions, including the negotiation and execution of definitive agreements, as well as receipt of all corporate approvals.

Avianca Holdings said it will use the funding to support its working capital position during the implementation of its “Avianca 2021” restructuring plan and the reprofiling of its liabilities, including a USD550 million bond.

Kingsland Holdings is controlled by the Kriete Family whose patriarch, Roberto Kriete, is Avianca Airlines' chairman.

Both Kingsland and United Airlines Holdings have previously indicated their willingness to extend up to USD250 million in financing to Avianca Holdings.