GOL reaches agreement with Boeing over 737 MAX debt
Brazilian airline GOL announced that it has reached an agreement with Boeing that was approved by the New York Bankruptcy Court, in another step towards the company leaving Chapter 11.
In financial restructuring since January 2024, the carrier has sought to renegotiate debts with lessors of its fleet and also an order for 91 737 MAX jets with Boeing.
According to GOL, the agreement will free up at least US$235 million that will be distributed to general unsecured creditors.
The company also states that it will significantly reduce its debt, converting or extinguishing approximately US$1.7 billion of its debt and another US$850 million in obligations.
“The conclusion of the negotiations with Boeing represents another milestone in GOL’s overall restructuring objectives,” the airline said in a statement to investors.
GOL is Brazil’s third-largest airline and part of the Abra Group, which also includes Colombia’s Avianca and Spain’s Wamos.
The airline is in talks with rival Azul Linhas Aéreas about a possible merger of their businesses.
The deal, however, is subject to approval by Brazil’s antitrust authority and is expected to take about a year to reach a decision.
GOL’s fleet currently comprises 139 Boeing 737s, 54 of which are the MAX 8 variant.
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