NASSAU, Bahamas--(BUSINESS WIRE)--Kingsland Holdings Limited (“Kingsland”), minority shareholder of Avianca Holdings S.A. (“Avianca”), today responded to recent inaccurate commentary made by Avianca in relation to Kingsland’s motion seeking preliminary injunctive relief to prevent Synergy Aerospace Corp. (“Synergy”) and Germán Efromovich from proceeding with their unlawful attempt to force through the egregiously one-sided United Transaction.
On March 15, 2017, Kingsland submitted an application in New York Supreme Court asking the Court to order Avianca, Germán Efromovich, Jose Efromovich, Synergy and United Airlines, Inc., to show cause why they should not be enjoined from proceeding with the proposed United Transaction or further impeding Avianca’s strategic recapitalization process.
After a hearing on March 15, 2017, in which counsel for Avianca argued against the request, the Court signed an Order directing that all defendants, including Avianca, must show cause at a hearing set for March 28, 2017, as to why a preliminary injunction should not be issued. The Order further states that it is “sufficiently alleged that Plaintiff (Kingsland)… is seeking injunctive relief to prevent Defendants from consummating a self-dealing transaction that, if not enjoined, will cause irreparable harm to Kingsland, Avianca and its shareholders.”
The Order signed by the Court neither states that Kingsland’s request for preliminary injunction was denied, nor does it state that the request for expedited discovery was denied.
In its securities filing and statement issued on March 15, 2017, Avianca misleadingly claims that a judge “immediately denied Kingsland Holdings’ request”. The Order in fact scheduled the hearing that Kingsland had requested.
On February 28, 2017, Kingsland filed a lawsuit in New York State Court challenging Synergy’s and Mr. Efromovich’s conduct with respect to Avianca.
As a significant shareholder, Kingsland Holdings is deeply committed to the long-term success of Avianca and is pursuing this action to protect the viability of the company and safeguard the interests of all minority shareholders. Unfortunately, Germán Efromovich does not share this commitment to Avianca. Ignoring his fiduciary duty to Avianca’s shareholders, he is negotiating a self-serving deal with United Airlines under which hundreds of millions of dollars from United will flow directly to his holding company, Synergy Aerospace Corporation, with potentially none of the proceeds from the transaction benefiting Avianca. This is only the latest example of Germán Efromovich’s self-dealing at the expense of other shareholders, and Kingsland is determined that it will be his last.