GOL Reaches Agreement with Whitebox Advisors, Paving the Way for Chapter 11 Reorganization
GOL Linhas Aéreas announced on Thursday, May 8, that it has reached an understanding with Whitebox Advisors LLC, the asset manager representing holders of the 3.75% Senior Convertible Notes due 2024, issued by Gol Equity Finance. The agreement resolves an outstanding dispute over compensation under the airline’s Judicial Reorganization Plan in the United States, which is proceeding under Chapter 11 of the U.S. Bankruptcy Code.
Whitebox Advisors LLC was the last major creditor with whom GOL needed to reach terms following its Chapter 11 filing in late January 2024. The filing aimed to restructure the airline’s short-term financial debt and strengthen its capital structure for long-term sustainability.
According to reports from our partner outlet Aeroin, the agreement ensures a favorable vote from Class 10(e)—a group that includes general unsecured claimholders against Gol Equity Finance. This step is critical in advancing toward judicial confirmation of the reorganization plan on a consensual basis.
As part of the deal, the reorganization plan will be revised to include changes in distributions to different creditors, depending on each debtor’s specific situation. The updated terms will be submitted in the revised plan filed with the U.S. Bankruptcy Court overseeing the case.
The Brazilian airline reiterated its expectation to complete the Chapter 11 reorganization process by June 2025. GOL’s financial restructuring plan includes the conversion or cancellation of up to $1.7 billion in pre-petition financial debt, along with around $850 million in additional obligations. This restructuring is expected to result in significant dilution of the airline’s existing shareholder base, while respecting shareholder preemptive rights under Brazilian law.
The Chapter 11 process allows companies to reorganize their finances and operations while protected from creditor actions. During this period, GOL continues to operate its passenger and cargo flights normally.
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