Brazilian airline Gol allowed to tap USD 950 million loan

Gol, Brazil’s second-largest airline with a 33.3 percent market share in 2023, has secured court approval to tap into a USD 950 million loan provided by lenders including Elliott, a US-based investment management firm. Judge Martin Glenn, however, demanded the company and its lenders present enough provisions to keep legal fees tied to the restructuring in check. 

Gol filed for Chapter 11 bankruptcy protection in the U.S. on Thursday, reporting a gross debt of BRL 20.3 billion (USD 4.1 billion) and the USD 950 million debtor-in-possession financing from a group of bondholders of its holding company Abra Group — which also controls Colombian carrier Avianca.

On Monday, the company updated its preliminary and unaudited results for 2023 — the total debt now amounts to BRL 20.2 billion (USD 4 billion) — as well as its list of creditors. Air France-KLM appears at the top, with a total credit of USD 25.2 million. Aircraft lessors Sasof (USD 8.29 million), Genesis Aircraft Services (USD 4.79 million), and Sapphire Leasing (USD 4.51 million) also made the list.  

Previously, Gol said it could access USD 350 million of the total DIP financing soon after the court’s approval, which would help the company continue its operations and reorganization plans. The company is seeking to restructure the debt with its main financial stakeholders, particularly aircraft lessors and investors.

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