GOL’s restructuring approved
THE US Bankruptcy Court has approved the reorganisation plan of Brazilian low-cost carrier GOL Linhas Aéreas Inteligentes, securing its plan to emerge from Chapter 11 bankruptcy protection in early June. The Rio de Janeiro-based airline recently secured $1.9bn in exit financing, comprising $1.25bn from anchor investors Castlelake and Elliott Investment Management, $50m from the ad hoc group Abra Bondholders, $30m from the carrier’s public rights offering and $570m from additional investors. GOL said this money will be used to support future operations and repay its debts. Concession packages of around $1.1bn have been negotiated with aircraft lessors for the airline’s fleet, including financial support to clear its maintenance backlog. A deal with Boeing will also provide more than $260m in concessions and $700m of “total relief”. GOL currently boasts an all-Boeing 737 fleet of more than 130 aircraft. The airline said it expects to emerge with a “strong liquidity position of approximately $900m.” It added that it was now “well-positioned to deploy its rebuilt capacity both domestically and internationally by leveraging its significant presence in key Brazilian hubs.”