September 27, 2019
A team of litigators from Cadwalader secured a major victory on behalf of their client, Kingsland Holdings Limited. Kingsland is serving as Independent Third Party in exercising remedies of United Airlines, Inc. associated with contracts effectuating loan obligations that currently stand in excess of $500,000,000. The loan at issue is secured by shares of Colombia-based Avianca Holdings SA, the second oldest airline in the world.
The Cadwalader team obtained judgment in Kingsland’s favor against the defendant, BRW Aviation Holding LLC, following argument before the Honorable Jennifer G. Schecter in the New York Supreme Court, Commercial Division. The judgment means that Kingsland will now be permitted to move towards a foreclosure sale on the Avianca shares securing the loan obligations. In an unusual move that signaled the strength of Kingsland’s case, the Court granted judgment from the bench rather than wait to issue a written opinion. Justice Schecter also awarded Kingsland a preliminary injunction prohibiting BRW Aviation from interfering with Kingsland’s lawful operation of BRW Aviation’s controlling interest in Avianca during the foreclosure sale process.
Sean F. O’Shea, lead counsel for Kingsland and Chair of Cadwalader’s Trial Practice Group, said: “Today was a total and absolute victory for Kingsland and United. We are gratified that Kingsland can now move forward expeditiously toward a sale of the collateral and continue the process of building the financial health of Avianca.”
In addition to O’Shea, Kingsland was also represented by Cadwalader partner Michael E. Petrella and associates Charles A. Munn and James W. Orth.