Gol secures new financing and updates restructuring plan ahead of Chapter 11 exit in June
The Brazilian airline reached an agreement with senior secured bondholders, adding to previously committed investors. The total funding now stands at US$ 1.375 billion.
Gol Linhas Aéreas continues to move forward with its Chapter 11 restructuring process in the United States, aiming to conclude proceedings by the end of June. In its latest development, the airline reached an agreement with a group of senior secured bondholders maturing in 2026, unlocking an additional US$ 125 million in new funding, which complements the US$ 1.25 billion previously committed by Castlelake and Elliott Management.
The agreement marks a significant milestone in the company’s financial restructuring, which began in early 2024, providing the liquidity needed to sustain operations and reshape its capital structure.
Gol will now update its reorganization plan to incorporate the new terms, including a provision to offer up to US$ 100 million in new non-convertible debt to creditors outside the main investor group. In addition, remaining bondholders will have the opportunity to subscribe to an additional US$ 50 million of financing under the same conditions.
As part of its broader recovery strategy, Gol intends to convert up to US$ 1.7 billion of debt into equity and settle approximately US$ 850 million in liabilities, a move that will result in significant dilution of its current shareholder base, though existing investors will retain their preemptive rights.
This development takes place alongside the consolidation of Abra Group Limited, a UK-based private holding company that controls both Gol and Colombia’s Avianca. While both airlines will continue to operate independently, the shared corporate structure allows for strategic coordination and restructuring efficiencies, without altering their respective brand identities.
You might be interested
Gol filed for Chapter 11 protection in early 2024 to reorganize its debt with international creditors, maintain operational continuity, and execute its transformation plan amid ongoing challenges in the Latin American airline sector.
With this additional funding secured, the airline expects to emerge from Chapter 11 by the end of the second quarter of the year, laying the groundwork for a new phase in its business strategy.
AUTOR
Pasajero de destino variable sin alojamiento. Y a veces gráfico and english feed en Aviacionline
Comentarios
Para comentar, debés estar registrado
Por favor, iniciá sesión