Banco do Brasil and Bradesco question Gol's DIP Financing guarantees

Banco do Brasil and Bradesco raised objections to Gol's US$950 million Debtor-in-Possession (DIP) loan, a specific credit modality for companies in difficult financial situations. Banks do not question the financing, but the guarantee structure.

The two financial institutions request that the guarantees for the loan made by the bondholders of Abra, Gol's parent company, during the Chapter 11 process, are not the same as those for the airline's debenture issues.

The financial institutions request that DIP Financing not share “any assets, property or guarantee given or assigned” also to the seventh and eighth series of Gol debentures. Among the guarantees of the debentures that also guarantee the DIP loan are credit card receivables.

Gol's seventh and eighth series of debentures were issued respectively in 2018 and 2021. They total US$299.09 million, around R$1.4 billion, according to documents presented by Bradesco and BB. At the end of last year, Gol renegotiated with these debenture holders to change the maturity of the bonds to 2026 and split payments.

At the end of January, the chief judge of the New York bankruptcy court, Martin Glenn, temporarily accepted Gol's request to make the DIP loan. The provisional authorization allowed the immediate entry of US$350 million into the company.

The remainder of the DIP Financing can be transferred to the company after final approval of the financing by the New York Court. The hearing for definitive authorization of the loan is scheduled for February 15, at 12 pm (Brasília time).