Monday, 04 December 2017 14:27

Skadden instructed on Avianca shareholder litigation

Skadden, Arps, Slate, Meagher & Flom advised Avianca in a litigation brought by its second-largest shareholder, regarding the airline´s proposed alliance with United. 

Avianca is Colombia's flagship airline and Latin America's second largest carrier. Both Avianca and U.S. carrier United Airlines are members of the Star Alliance and have been planning a closer partnership. 

Kingsland Holding, the minority shareholder, sued Avianca and its controling shareholder in the New York State Supreme Court in February 2017 to block the strategic alliance. In March, Avianca brought forward its own lawsuit against Kingsland, seeking dismissal. 

On November 29, both parties agreed to withdraw their respective lawsuits. Kingsland withdrew its lawsuit after Avianca succeeded twice in blocking attempts to obtain expedited discovery and after the Colombian carrier had filed a motion to dismiss and prevailed on its motion to stay all discovery pending resolution of its motion to dismiss. 

Skadden advised Avianca throughout the proceedings. 

According to media reports, Avianca continues to negotiate its strategic alliance with United. 

Read 36 times Last modified on Tuesday, 05 December 2017 16:58