Brazilian Career GOL has secured $1.9 billion in exit funding as it is about to emerge soon after the restructuring of Chapter 11.
GOL announced on May 16 that it secured a binding commitment to fund its bankruptcy exit strategy and won $1.25 billion from the investment management of anchor investors Castle Lake and Elliott.
The Rio de Janeiro-based carrier has secured $50 million from the ad hoc group's Augusta bondholders, $30 million from the company's public rights offering and $570 million from “other investors.”
GOL states that the funds will be used to “repay the obligations under the funding of the debtors entered into by the company and its subsidiaries in connection with entry into the Chapter 11 lawsuit.”
The funding was also used to support business operations after bankruptcy, and the company was poised to complete Chapter 11 procedures immediately next week.
The hearing is taking place as GOL, along with the US Bankruptcy Court for the Southern District of New York, approved the new business plan on May 20, potentially completing the restructuring process that began in January 2024.
The company said “there is no guarantee that the bankruptcy court will confirm it.”
The airline's goal is to emerge as a “highly competent standalone company,” but GOL Parent Abra Group is engaged in partnership consultations with fellow Brazilian carrier Azul.
Abra Group is reportedly waiting for GOL to complete the Chapter 11 process before paying attention to such transactions.
Sao Paulo-based Azur, which recently completed its own restructuring process, revealed on May 14 that its stake in the company of BlackRock, a New York investment firm, had grown to around 5%.
Both airlines reported a profitable first quarter earlier this week, a seasonally strong hour for Latin American airlines.
