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Colombia’s flag carrier, Avianca, has submitted a reorganization plan to a U.S. bankruptcy court, Flight Global reported. The Bogota-based airline’s plan, submitted to the bankruptcy court for the Southern District of New York on Aug. 10, outlines its obligations to creditors and the settlement of claims. It says a new strategy will help it simplify operations and position Avianca to thrive in the Latin American market. Avianca and its Latin American peers Aeromexico and LATAM Airlines declared bankruptcy last year after the coronavirus decimated global air travel demand. Airlines shrunk networks, retired and stored aircraft, and laid off staff in an effort to preserve cash. In documents submitted to the court this week, Avianca outlines a new fleet plan and says it expects to emerge from the proceedings with 109 aircraft, down from the 158 it operated prior to 2020. It has also been working with airframers and lessors to restructure future aircraft deliveries. The airline has 66 aircraft in service and 29 in storage, according to Cirium fleets data.

Centerra Gold Inc. said it turned a loss for the second quarter after the seizure of the Kumtor Mine and the continuing actions by the Kyrgyzstan government, Dow Jones Newswires reported. The Toronto-based gold miner on Tuesday posted a net loss of $851.7 million, compared with a profit of $80.7 million in the year-ago period. It reported a loss of $2.87 a share, compared with a profit of 27 cents a share in the same period last year. The results included a loss on the change of control of the Kumtor Mine of $926.4 million, partially offset by higher increase in net earnings from continuing operations, the company said. Adjusted earnings were 26 cents a share. Revenue rose to $202.3 million from $130 million. Centerra placed its Kumtor gold-mining operations in Kyrgyzstan under bankruptcy protection in the U.S. after authorities in the central Asian country took control of the project over alleged safety concerns. It filed the Kyrgyz units for chapter 11 bankruptcy in New York with the goal of ensuring Kyrgyzstan doesn't profit from a potential seizure and expropriation of the Kumtor mine, Centerra CEO Scott Perry has said.

Bankrupt units of a Mexican and Colombian payroll lender have secured court approval to access part of a $45 million loan to fund operations during their chapter 11 case after agreeing to install a chief restructuring officer, Reuters reported. During a virtual hearing on Wednesday, U.S. Bankruptcy Judge Kate Stickles in Wilmington, Del., signed off on Alpha Latam Management LLC's request to tap $17.5 million of the full loan. A hearing on the rest of the loan will be held at a later date. ALM is an affiliate of Mexico’s Alpha Holding SA de CV, which is not part of the chapter 11 case. ALM and certain affiliates, which control Alpha's Colombian operations, filed for bankruptcy on Sunday with $768 million in debt following accounting errors that caused creditors to declare defaults. The bankruptcy loan is being provided by existing noteholders. Judge Stickles’ approval followed an initial hearing on Tuesday in which the noteholders, represented by Cleary Gottlieb Steen & Hamilton, said ALM must bring in an independent chief restructuring officer to guide the bankruptcy and sale process before they would commit to the loan. The last-minute demand threatened to scuttle the loan deal, but the parties reached an agreement by Wednesday.

Creditors said that Alpha defaulted earlier this year when the privately held nonbank lender disclosed accounting errors in its Mexican segment, sending its bond prices tumbling, WSJ Pro Bankruptcy reported. Alpha has $768.4 million in debt, mostly unsecured bonds, and has lined up $45 million in emergency financing to get through chapter 11 proceedings in the U.S. Bankruptcy Court in Wilmington, Del. The Mexican segment didn’t file for bankruptcy. Alpha asked the bankruptcy court for permission “to continue operating the Colombian business without interruption to ensure that collections of all outstanding loans continue.” Founded in 2011, Alpha extends credit to government and private-sector employees in Mexico and Colombia. Customers repay the loans through payroll deductions. The company also makes small-business loans. Alpha borrows money from bondholders and uses it to lend at interest rates that average 24.4% annually in Colombia. In April, the company said that there were errors in the 2018 and 2019 financial statements for its Mexican business and that it would have to revise them. Soon after, creditors sent default notices to Alpha for, among other things, failing to accurately report its finances.