The news for Avianca they continue to be negative. This Monday, the listing of the airline’s share on the New York Stock Exchange, which is made in American Depositary Receipt-ADR (that is, an investment that represents a specific number of shares), was temporarily suspended.
In this regard, analysts explain that this decision in the United States stock market is applied to avoid strong volatility in Avianca securities, after the decision to enter Chapter 11 of the American regulation (reorganization process.
“It is positive, just to reduce volatility a bit and it is a lesson that it is pertinent to suspend the current trading,” said Raúl Moreno, strategy manager at Global Securities.
In that sense, the analyst of Bolsa Andrés Moreno pointed out that, in effect, the suspension is presented by the latest negative news about the current situation of the company.
“There is news that would significantly impact share prices. It is suspended so that there is not much volatility; they stop trading for a while and then return after meeting some requirements,” he said.
However, Raúl Moreno (from Global Securities) clarified that the outlook is bleak because the current crisis facing Avianca raises doubts in the market due to its ability to pay its latest debt acquisition, close to US $ 550 million, since the capitalization of the company is US $ 450 million.
“What this generates is that the volatilities on Avianca are high and it is most likely that the current creditors (bondholders) will become Avianca shareholders and it would generate a decrease in minority shareholders,” he commented.
“As the bond had guarantees, most of these creditors are going to be new shareholders and that is going to generate a fluctuation in the float (the shares that are traded on the stock market), which is 37%, and it would be for below 3%, “he added.
The expert analyzed that this situation would have an impact on the trading of Avianca’s shares on the Colombian Stock Exchange (BVC), which would even lead to a delisting in the market.
“When there is a strong reduction in the float, the Superfinanciera would make the decision that, possibly, that stock should be delisted from the Stock Market,” he warned.
In addition, today, the negotiation of the airline’s titles in the local market has not presented movement or variation.
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