A US court granted Brazilian low-cost airline Gol “key approvals” to tap a $950 million debtor-in-possession (DIP) financing committed by bondholders of its parent ABRA, giving the airline “immediate access” to the funds.
“We are pleased by this successful start to our legal financial restructuring,” chief executive Celso Ferrer said on 29 January. “Obtaining the US court’s authorisation to access new financing will enable Gol to continue operating in the normal course, as we anticipated.”
“We initiated this process not only for the benefit of our company and our employees, but to make us an even stronger airline for our customers, suppliers and all our partners,” he adds.
Last week, Gol filed for Chapter 11 bankruptcy protection in United States Bankruptcy Court for the Southern District of New York. The company intends to use the process to restructure debt while continuing to operate as usual, subject to court supervision.
The airline said last week it will use the oversight to “restructure its near-term financial obligations and strengthen its capital structure for long-term sustainability”. It has planned for all passenger service, Gollog cargo flights, its loyalty programme and other operations to continue during the process, the company said on 25 January.
“GOL is confident that this process is in the best interests of its stakeholders, including employees and customers, who will continue to benefit from the company’s affordable, safe and reliable flights as well as its best-in-class service,” the company adds.
Gol joined with Colombia’s Avianca in May 2022 in forming ABRA, which was touted as an opportunity for the airlines to better compete in international long-haul and cargo markets and to launch new flights. Under the agreement, both carriers maintain their individual brands, strategies and teams – a move intended to create long-term stability in the post-coronavirus environment.
The structure is controlled by the principal shareholders of Avianca and the majority shareholder of Gol, and led by Latin American airline veterans. Adrian Neuhauser, formerly chief executive of Avianca, ascended to the ABRA CEO position at the beginning of 2024.
In the early days of the Covid-19 pandemic in mid-2020, three other Latin American carriers – Chile’s LATAM Airlines Group, Aeromexico and Avianca – filed for Chapter 11 bankruptcy protection in the absence of industry-specific financial support from their respective governments. All three emerged from the process several years later.
