The Brazilian airline Goal reached a financial restructuring agreement with its main lender, the Abra Group, also owner of the Colombian Avianca, which will allow it to face the debts and take the company out of Chapter 11 in 2025.
The announced pact would extinguish about $2.5 billion in debt and other obligations. Gol said it hopes to raise up to $1.85 billion in financing to repay an existing line of credit and finance the airline’s exit from bankruptcy.
According to information from Bloomberg, Gol will present the proposal before the Bankruptcy Court of the Southern District of New York before the end of the year and aims to exit the process in April 2025.
Currencies fall sharply after Trump’s victory: Mexican peso leads losses. Abra, Gol’s largest secured creditor and the largest investor in the Colombian Avianca, agreed to exchange at least $950 million in debt for shares of the reorganized Brazilian airline. Gol said in a statement that Abra also agreed to receive $850 million in recovered debt.
The proposed restructuring is also supported by a committee representing Gol’s unsecured creditors, the airline said.
The restructuring plan, which must be approved by a bankruptcy judge, offers Gol a path out of bankruptcy protection with substantially less debt. The company, which took advantage of the Chapter 11 in Januaryis one of South America’s largest airlines, but has struggled with financial liabilities stemming from a drop in travel during the pandemic, substantial debt and Brazil’s high interest rate.
