BOGOTA, March 8 Kingsland Holdings Limited, a
minority shareholder in Colombian flagship airline Avianca
, has formally requested shareholders vote on whether
to appoint an auditor to examine transactions between the
airline and controlling shareholder Synergy, Kingsland said on
Synergy is controlled by investor German Efromovich, who
along with United Continental Holdings Inc is being sued
by Kingsland for "clandestinely" negotiating an $800 million
loan and strategic alliance behind the backs of other
Synergy holds 78 percent of Avianca voting shares, while
Kingsland holds 22 percent.
Kingsland, controlled by El Salvador's Kriete family, said
in a statement on Wednesday that it has been requesting for
several months that Avianca retain an independent auditor to
review transactions with Synergy.
"To date, Synergy has caused Avianca to deny these requests,
leaving Kingsland no choice but to take all actions necessary to
protect the interests of Avianca's minority shareholders," the
"In the event that, at the extraordinary shareholders
meeting, Synergy uses its controlling position in Avianca's
voting shares to again deny an impartial review of its related
party transactions with Avianca, Kingsland intends to request
that a civil court in Panama appoint independent auditors."
Avianca could not immediately be reached for comment.
(Reporting by Julia Symmes Cobb; Editing by Bernard Orr)