A six-year journey in the stock market was the one made by the stock of Avianca Holdings in New York, represented in the so-called ADS (American Depositary Shares), titles that group shares of the company’s preferences, which in their case were eight shares for each title.
This Tuesday, the same Avianca Holdings revealed that, as usual practice, the New York Stock Exchange (NYSE), decided to suspend the ADS trading as a result of the request by the company to make a voluntary request under Chapter 11 of the United States Bankruptcy Code, in Bankruptcy Court for the Southern District of New York, on May 10, 2020.
The New York Stock Exchange notified the company that it will also apply to the Securities and Exchange Commission (SEC) to remove ADSs once applicable procedures are completed, including any appeals by the company to the decision of the staff of the world’s leading stock market. It may interest you: These are Avianca Holdings’ top five creditors
Additionally, the company reported that the Colombian Stock Exchange (BVC) notified Avianca that its preferred shares continue to be listed on the BVC, that these are still not eligible for repos transactions and are inadmissible as a guarantee for margin calls in other types of transactions, while since May 11, 2020, no futures or options contracts can be entered into with respect to Avianca’s preferred shares.
After this Tuesday the company’s title plummeted 85 percent, once the variation cap that triggers the suspension of negotiations was raised for your case,
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