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UPDATE 1-Avianca Airlines, shareholder agree to withdraw lawsuits
November 29, 2017 / 9:06 PM / 14 days ago

UPDATE 1-Avianca Airlines, shareholder agree to withdraw lawsuits

(Adds Kingsland’s comment in the last paragraph)

Nov 29 (Reuters) - Avianca Holdings and a shareholder agreed to withdraw their lawsuits that were filed following disagreements over a planned partnership with U.S. carrier United Airlines, the Colombian airline said on Wednesday.

Kingsland Holdings Ltd, Avianca’s minority shareholder, sued the company and its controlling shareholder Synergy Group Corp earlier this year, seeking to stop the deal with the No.3 U.S. airline.

Kingsland had said the alliance represented a bad deal for Avianca’s other shareholders and called it “egregiously one-sided”.

In March, Avianca countersued Kingsland, seeking dismissal of the lawsuit, which was filed in New York State Supreme Court in late February.

Avianca said on Wednesday that it continued to negotiate a strategic alliance with United Airlines and hopes to finalize an agreement by the end of the year.

“Kingsland and the other parties agreed to discontinue that litigation in order to continue to focus on ongoing business negotiations that, if successful, would resolve their outstanding differences...,” the shareholder said in an emailed statement. (Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D‘Silva)

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