GOL Airlines announced today that it will voluntarily file for Chapter 11 in the United States Bankruptcy Court for the Southern District of New York, aiming to restructure its short-term financial obligations and strengthen its capital structure to achieve long-term sustainability.
As detailed this afternoon through a statement, this process begins with a commitment to financing of USD 950 million under the DIP (Debtor in Possession) format from members of the Ad Hoc group of Abra Bondholders and other Abra bondholders (the holding that will group the company with Avianca).
«The company will seek access to this financing as part of the first day’s hearing with the U.S. Court, scheduled for the coming days. The financing is subject to judicial approval and, along with the cash generated by ongoing operations, will provide substantial liquidity to support operations, which continue normally, during the financial restructuring process«, states GOL.
This includes GOL passenger flights, GOLLOG cargo operations, and the Smiles loyalty program, among others.
“GOL has made significant efforts to offer the best travel experience to Customers, while improving its profitability and financial position. We have made notable progress so far and believe that this process will allow us to address the challenges generated by the pandemic, while maintaining the high standard of services we offer to Customers,» commented Celso Ferrer, CEO of GOL.
«This process will allow GOL to further expand its position as one of the leading airlines in Latin America, while maintaining the purpose of ‘Being the First for Everyone’. We are confident that the measures being taken will allow GOL to continue offering lower fares with exceptional travel experiences to Customers on an increasingly large number of routes. Our collaborators will continue to carry out their daily activities normally and ensure the quality and Safety of our flights. We are grateful to have made progress with new capital commitments that will help in our long-term strategies, including improving accessibility, travel experience, and Customer choice,» he added.
GOL will be the fourth major Latin American airline group to file for Chapter 11 following the outbreak of the pandemic. Aeromexico, Avianca, and LATAM underwent similar processes from which they emerged successfully.
