Avianca Holdings and a shareholder agreed to withdraw their lawsuits that were filed following disagreements over a planned partnership with U.S. carrier United Airlines, the Colombian airline said on Wednesday.
Kingsland Holdings Ltd, Avianca’s minority shareholder, sued the company and its controlling shareholder Synergy Group Corp earlier this year, seeking to stop the deal with the No.3 U.S. airline.
Kingsland had said the alliance represented a bad deal for Avianca’s other shareholders and called it “egregiously one-sided”.
In March, Avianca countersued Kingsland, seeking dismissal of the lawsuit, which was filed in New York State Supreme Court in late February.
Avianca said on Wednesday that it continued to negotiate a strategic alliance with United Airlines and hopes to finalize an agreement by the end of the year. (Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D‘Silva)
