Airline filed for judicial recovery on February 25; received financing of US$ 950 million
Brazilian airline GOL received approval from the Bankruptcy Court for the Southern District of New York for a US$1 billion loan for its judicial recovery process. Here's the complete of the ad (PDF – 221 kB)
On January 29, GOL obtained court approval to access the 1st installment of financing of US$950 million (around R$4.7 billion), granted by members of Abra's Ad Hoc Bondholder Group.
The Court granted immediate access to US$350 million (around R$1.7 billion) of the total financing. The rest will be released in the next stages. According to GOL, the decision guarantees that the airline will continue to operate normally during the legal process.
“We are pleased with the successful start of our legal financial restructuring. Obtaining authorization from the United States Court to access new financing will allow GOL to continue operating normally, as we anticipated”says Celso Ferrer, CEO of GOL.
The company requested entry into the process called “chapter 11” on January 25th and had the request approved the following day by the American Court. Until the date of the request, the most recent financial data referred to the 3rd quarter of 2023, when the company reported having R$20 billion in debt. According to the company, half of the debts are with aircraft lessors.
- What is chapter 11 – is the chapter of the US Bankruptcy Law that deals with the financial restructuring of companies, a mechanism equivalent to Brazilian judicial recovery. The process allows companies to recover their financial situation, including debt renegotiation, while continuing to operate normally with US judicial oversight and approval. The mechanism has been used successfully by many international airlines, including Latam, United Airlines, Delta, Aeroméxico and Avianca Colombia.
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