GOL Board Proposes Capital Hike to Support Restructuring

The board of GOL Linhas Aéreas Inteligentes has proposed a capital increase of BRL5.34 billion to BRL19.25 billion (USD940 million to USD3.4 billion) as part of its Chapter 11 restructuring plan. The proposal includes issuing between 3.64 trillion and 13.1 trillion common shares, along with 430.3 billion to 1.55 trillion preferred shares.

This move aims to strengthen the airline’s financial position by converting a portion of its debt into equity. The capital raise is subject to shareholder approval and authorization from the U.S. bankruptcy court overseeing the case. A shareholder meeting to vote on the proposal is scheduled for May 30.

GOL filed for Chapter 11 bankruptcy protection in early 2024 due to mounting debt and delays in aircraft deliveries. The restructuring plan, developed with creditor support—including major shareholder Abra Group Limited—focuses on debt-to-equity conversion to improve financial stability.

The announcement triggered a sharp market reaction, with GOL’s shares plunging 40% on the B3 (Bolsa do Brasil), reaching their lowest point since the company went public. Though the stock has slightly rebounded, it remains over 30% below its mid-April levels.

GOL also announced it has secured support from its final major creditor, Whitebox Advisors. The agreement with Whitebox ensures unanimous backing for the recovery plan, providing a clear path to a fully consensual plan confirmation.

The airline’s board emphasized that the capital increase is essential to completing the restructuring and securing GOL’s long-term financial health.

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