Leaked video of chairman’s ‘bankrupt’ flub sends Avianca to record low
Avianca Holdings plunged to a record low after the airline’s chairman was seen in a leaked internal video telling employees that the company is “bankrupt.” The stock dropped as much as 15% in Bogota trading before paring losses. Chairman Roberto Kriete was trying to reiterate to employees the urgency of getting back to profitability, said Carlos Enrique Rodriguez, head of equity research at brokerage Ultraserfinco. Instead, his comments wiped out more than US$40m of market capitalisation, as the video surfaced on social media after markets closed Monday. The company quickly tried to qualify the statement. Kriete “used the colloquial term ‘bankrupt’”, though the company is not in any bankruptcy or insolvency process, the airline said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-08-28/star/leaked-video-of-chairman2019s-2018bankrupt2019-flub-sends-avianca-to-record-low
https://portal.staralliance.com/cms/logo.png
Leaked video of chairman’s ‘bankrupt’ flub sends Avianca to record low
Avianca Holdings plunged to a record low after the airline’s chairman was seen in a leaked internal video telling employees that the company is “bankrupt.” The stock dropped as much as 15% in Bogota trading before paring losses. Chairman Roberto Kriete was trying to reiterate to employees the urgency of getting back to profitability, said Carlos Enrique Rodriguez, head of equity research at brokerage Ultraserfinco. Instead, his comments wiped out more than US$40m of market capitalisation, as the video surfaced on social media after markets closed Monday. The company quickly tried to qualify the statement. Kriete “used the colloquial term ‘bankrupt’”, though the company is not in any bankruptcy or insolvency process, the airline said. <br/>
