Brazilian airline GOL has secured exit funding from unnamed investors to function to emerge in the restructuring of Chapter 11, “appropriately capitalized standalone companies.”
In a letter to shareholders on March 24, GOL said it had secured $1.25 on $19 billion in bonds issued as part of a restructuring plan from “specific investors.” That wasn't even more specific.
The company says it will use the stock to repay its obligations as a party to the Chapter 11 proceedings of the U.S. Bankruptcy Court.
GOL is investigating further transactions, such as “issuing new debt or assumptions” and potential equity investments, and is considering opportunities offered by “future financial investors.”
Under this plan, the company intends to remove the balance sheet by converting it into equities or converting funded liabilities and other obligations up to $1.7 billion to approximately $850 million.
Once implemented, these transactions are expected to cause a “significant dilution” of GOL's outstanding shares.
In November, GOL announced that it had participated in a debt transaction with a majority investor Abra Group. Conditions include removing up to $2.55 billion in debt from the airline's books and ABRA receives approximately $950 million in new GOL equity.
Sao Paulo-based GOL took part in the formal fiscal restructuring process in January 2024.
GOL will report its latest quarter results on March 28th.
In a parallel track with GOL's restructuring plan, Abra is investigating the possible combination of GOL and Azul in the deal that will create Brazil's largest airline.
