UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
For the month of
January,
2010
Commission
File Number 001-32696
Copa
Holdings, S.A.
(Translation
of Registrant's Name Into English)
Boulevard
Costa del Este, Avenida Principal y Avenida de la Rotonda
Urbanización
Costa del Este
Parque
Lefevre
Panama
City, Panama
(Address
of principal executive offices)
(Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.)
Form 20-F
X
Form 40-F
(Indicate
by check whether the registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes
No X
(If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b);82- )
This
Current Report on Form 6-K is being filed for the purpose of updating the market
on potential risks and one-time losses incurred due to the devaluation of the
Venezuelan Bolivar (VEB).
On
Friday, January 8, 2010, the Venezuelan government announced its decision to
implement new fixed exchange rates effective Monday, January 11, 2010, which
resulted in a significant devaluation of the Bolivar against the U.S.
dollar.
Since
2005 the official exchange rate had been fixed at VEB 2.15 per U.S. dollar,
however, the new regime applies two official rates to different sectors of the
economy. The first exchange rate, applicable to imported goods characterized as
essential, will be VEB 2.60 per U.S. dollar, and the rate applicable to all
other imported goods and services, including the aviation sector, will be VEB
4.30 per U.S. dollar. At this time we are uncertain how this devaluation
will affect future demand for air travel in Venezuela and the results of our
business.
In
addition, we have significant cash balances in Bolivars subject to Venezuelan
exchange controls. Since 2003, under the Venezuelan foreign exchange
control regime, foreign companies are required to obtain Venezuelan government
approval to exchange Bolivars into U.S. dollars at the fixed official exchange
rate for the purpose of transferring funds out of Venezuela. Furthermore, since
2008 foreign companies with operations in Venezuela have experienced increasing
delays in obtaining such government approvals.
On
Wednesday, January 27, the Venezuelan government announced that it would apply
the exchange rate of VEB 2.60 per U.S. dollar to all authorization requests in
process of approval by the Venezuela Central Bank through January 8, 2010. As a
result, we estimate that the Company will incur losses related to the
devaluation of these funds of approximately US$21 million, which will be
recorded in the first quarter of 2010 in accordance with US GAAP.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.
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Copa
Holdings, S.A.
(Registrant)
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By:
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/s/ Victor
Vial |
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Name:
Victor Vial
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Title:
CFO |
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