Brazil’s GOL Secures $1.9B to Exit Chapter 11 Restructuring

GOL Linhas Aéreas Inteligentes has finalized a USD1.9 billion financing package to exit Chapter 11 bankruptcy, exceeding earlier expectations after securing stronger-than-anticipated interest from new investors.

In a stock market filing dated May 16, GOL confirmed that USD570 million of the total funding will come from new investors. Initially, the airline aimed to raise USD495.5 million from this group, but after receiving USD796.5 million in tentative commitments, it restructured the financing plan to accommodate more participation.

As part of the revised structure, GOL negotiated with the holders of its 8.00% senior secured notes due 2026, issued through its Luxembourg-based subsidiary Gol Finance. The company reduced their contribution from USD125 million to USD50 million, reallocating the remaining USD75 million to new investors.

The airline also announced that strong demand enabled it to lower the interest rate on the financing from 14.625% to 14.375%, improving the terms of the deal.

The full USD1.9 billion package includes USD1.25 billion from Castlelake and Elliott Investment Management, USD570 million from new investors, and USD30 million raised through a 2026 rights offering.

A U.S. bankruptcy court hearing to approve GOL’s restructuring plan is scheduled for May 20, 2025. The airline expects to formally exit Chapter 11 in early June 2025, positioning itself for renewed operational and financial stability following a turbulent period marked by debt challenges and market disruptions.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

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