US Court Approves Gol's Plan to Leave Chapter 11
Gol Linhas Aéreas carrier announced on Tuesday that the New York Bankruptcy Court approved its financial reorganization plan under Chapter 11, the US bankruptcy legislation.
The Brazilian airline now expects to leave the restructuring process in early June. The petition had been filed in January 2024, amid rising debt, especially with lessors, still under the effect of the Covid pandemic.
Gol stressed that its financial situation improved significantly during the process of renegotiating its debts.
The company obtained US$ 1 billion in DIP (debtor-in-possession) financing in addition to negotiating a total amount of US$ 1.1 billion with lessors of its aircraft.
Agreements with its parent company, Grupo Abra, and with the Brazilian government have also helped reduce its debts, in addition to actions to become more efficient and also to secure the supply of new 737 MAX jets from Boeing.
Finally, Gol secured an additional US$1.9 billion in exit financing, which will provide liquidity for it to implement its business plan.
Abra will be Gol’s largest shareholder
According to the airline, the next steps now are to hold a general meeting with its shareholders to approve the capital increase provided for in the plan on May 30.
After the implementation of the plan, Grupo Abra will become Gol’s largest indirect shareholder.
Previously the second largest airline in Brazil, Gol has lost ground to Azul Linhas Aéreas, with which it had signed an agreement that envisages a possible merger.
The financial crisis of its current partner, however, makes this alternative unlikely at the moment.
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