Avianca Brasil in talks since before bankruptcy filing for cash boost

Avianca Brasil has been in talks for a much-needed cash injection since before it filed for bankruptcy on Monday, said German Efromovich, whose family controls the carrier. Efromovich, the controlling shareholder of better-known airline Avianca Holdings, said Thursday that he was negotiating with funds, which he declined to identify. He also declined to elaborate on the value and whether the transaction would be debt or equity. Avianca Brasil had faced recurring losses and a series of airplane repossession lawsuits. It lost four planes in the days leading up to its Monday bankruptcy filing, according to a source with knowledge of the disputes. At least 10 other planes are still under dispute, and a judge ruled on Thursday that Avianca Brasil can hold on to them for 30 days in case the parties can reach a deal. Otherwise, Avianca Brasil will lose the planes as the lessor already has a favorable court order. The source said that Avianca owes lessors some $100m. The airline also has debts to suppliers, including airports, fuel and maintenance companies that court records show amounted to $125m. On Thursday afternoon, the airline announced a judge had granted it bankruptcy protection on its debts.<br/>