Brazil’s Gol signs deal with Abra for credit to exit Chapter 11
10:18 am Wednesday, November 06th, 2024
SAO PAULO (Reuters) -Brazilian airline Gol said on Wednesday it has signed a deal with shareholder Abra to reinforce its current restructuring plan and raise credit to exit bankruptcy, including the conversion of $950 million in Abra’s secured debt into Gol shares.
Abra is the main investor in airlines Gol and Avianca. The agreement is related to Gol’s Chapter 11 request, filed in January.
According to the filing, Gol will present a restructuring plan that will allow a significant reduction of its leverage. The airline will convert into shares or otherwise extinguish up to $1.7 billion of its existing pre-Chapter 11 debt and up to $850 million in other obligations.
Abra agreed to receive approximately $950 million in new Gol shares, conditional on the resolution of certain outstanding issues, in addition to $850 million in restructured debt.
Under the agreement, Gol said it plans to raise up to $1.85 billion in new capital in the form of a Chapter 11 exit credit line to pay off debtor-in-possession obligations and provide additional liquidity to support the company’s future strategy.
Gol stated that it hopes to present its reorganization plan to exit Chapter 11 before the end of this year “and currently projects the exit by the end of April 2025.”
(Reporting by Paula Arend Laier and Alberto Alerigi Jr.; Editing by Bernadette Baum)
