Brazil’s GOL Gets Court Approval for Chapter 11 Exit Plan

A U.S. bankruptcy court has approved the Chapter 11 restructuring plan of GOL Linhas Aéreas Inteligentes, allowing the Brazilian carrier to move forward with its exit from bankruptcy protection by early June 2025.

The court’s approval on May 20 followed GOL’s successful agreement to secure USD1.9 billion in exit financing. The package includes USD1.25 billion in funding from Castlelake and Elliott Investment Management, which will be used to repay USD1 billion in debtor-in-possession (DIP) financing provided by bondholders of parent company Abra Group.

As part of the restructuring, GOL plans to carry out a significant capital increase, which is scheduled for a shareholder vote on May 30. The new funds and capital structure are expected to stabilize the airline’s financial position and support its long-term operations.

Abra Group, which also controls Avianca Airlines, will retain its status as GOL’s largest shareholder once the restructuring is completed. The approved plan will eliminate or convert into equity up to USD1.6 billion in pre-restructuring debt and up to USD850 million in additional liabilities.

GOL entered Chapter 11 proceedings in early 2024 following financial difficulties caused by high debt levels and delayed aircraft deliveries. The court-approved plan marks a major milestone in the airline’s recovery efforts, ensuring continued operations and positioning GOL for sustainable growth within the Latin American aviation market.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com