GOL Reaches Agreement with Creditors and Moves Closer to Exiting Chapter 11
GOL Linhas Aéreas announced on Thursday that it has reached an agreement with a majority group of international creditors who hold the company’s 2026 senior secured notes. The deal marks another important step in the airline’s ongoing Chapter 11 reorganization process in the United States.
Under the agreement, the group of investors — referred to as the “Ad Hoc Group” — has committed to invest US$ 125 million in GOL’s exit financing.
Combined with previously confirmed commitments from Castlelake and Elliott Investment Management, GOL has now secured at least US$ 1.375 billion in new funding to support its restructuring.
Following the agreement, GOL will amend its reorganization plan, currently under review by the U.S. Bankruptcy Court. The updated plan will improve terms for all holders of the 2026 notes, including those not part of the negotiating group. The company expects to exit Chapter 11 by June 2025.
Debt reduction with shareholder impact
Once the restructuring is complete, GOL plans to reduce its total debt significantly by converting up to US$ 1.7 billion into equity or canceling the amount entirely. An additional US$ 850 million in liabilities will also be addressed.
This process will lead to the dilution of existing shares, meaning current shareholders will own a smaller percentage of the company. GOL has reiterated that shareholders’ preemptive rights will be maintained in accordance with Brazilian law.
Merger with Azul remains under discussion
In parallel to the financial restructuring, GOL also signed a memorandum of understanding with Azul Linhas Aéreas earlier this year to explore a potential merger. The agreement includes commercial cooperation such as codeshare flights and integration of loyalty programs.
While no definitive merger has been announced, the partnership is seen as a step toward consolidating Brazil’s competitive domestic aviation market, which has been under pressure from high costs and post-pandemic recovery challenges.
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