Brazilian carrier Gol has secured $1.9 billion in exit financing as it seeks to emerge soon from Chapter 11 restructuring.
Gol disclosed on 16 May that it had secured binding commitments to fund its bankruptcy exit strategy, with $1.25 billion coming from anchor investors Castlelake and Elliott Investment Management.
The Rio de Janeiro-based carrier also secured $50 million from the ad hoc group Abra Bondholders, $30 million from the company’s public rights offering and $570 million from “other investors”.
Gol says the money will be used to “repay the obligations under the debtor-in-possession financing entered into by the company and its subsidiaries in connection with entry into the Chapter 11 cases”.
The financing will also be used to support post-bankruptcy business operations, with the company poised to complete Chapter 11 proceedings potentially as soon as next week.
Gol has a hearing set for 20 May with the US Bankruptcy Court for the Southern District of New York to potentially approve its new business plan and complete a restructuring process that began in January 2024.
The company notes that “there can be no assurance that the bankruptcy court will confirm” its plan.
While the airline’s goal is to emerge as a “well-capitalised standalone company”, Gol parent Abra Group is engaged in tie-up talks with fellow Brazilian carrier Azul.
Abra Group is reportedly waiting for Gol to complete the Chapter 11 process before turning attention to such a deal.
Sao Paulo-based Azul, which recently completed a restructuring process of its own, disclosed on 14 May that New York investment firm BlackRock’s stake in the company has grown to roughly 5%.
Both airlines earlier this week reported profitable first quarters, a seasonally strong time for Latin American carriers.
