GOL Linhas Aéreas Inteligentes S.A. today announced that the U.S. Bankruptcy Court has decided to confirm GOL’s Chapter 11 Plan of Reorganization.
With confirmation secured, GOL remains on track to emerge from its restructuring process in early June 2025.
Throughout the course of its United States Chapter 11 process, GOL has made significant strides forward in improving its competitive position, financial foundation and operational performance. Key milestones of the process included:
- Securing US$ 1 billion in debtor-in-possession (“DIP”) financing, which bolstered liquidity and allowed GOL to re-invest in its aircraft fleet;
- Negotiating concession packages totaling US$ 1.1 billion from lessors covering all aircraft in GOL’s fleet, including financial support to clear its maintenance backlog while also providing permanent savings on rent and end of lease obligations;
- Obtaining support from Brazilian banks, including restructuring approximately US$ 150 million of local debentures and access to approximately US$ 340 million of receivables factoring, a critical working capital tool for Brazilian companies;
- Identifying and beginning implementation of a US$ 181 million annual profit improvement program to solidify GOL as one of the most cost competitive airlines in South America;
- Negotiating a Plan Support Agreement with Abra Group Limited (“Abra”) and the Unsecured Creditors Committee to deleverage GOL through a reduction of up to approximately US$ 1.6 billion of prepetition funded debt and up to US$ 0.8 billion of other obligations;
- Finalizing an agreement with the Brazilian governmental authorities to reduce unpaid government taxes, contingencies, and other liabilities by approximately US$ 750 million and to generate approximately US$ 184 million of liquidity through 2029;
- Reaching an agreement with The Boeing Company on modifications of the purchase contracts to provide US$ 262 million of concessions and incremental liquidity through 2029 and over US$ 0.7 billion of total relief; and
- Securing US$ 1.9 billion in exit financingwhich provides ample liquidity to repay the Company’s DIP maturity in full upon emergence, while also providing additional liquidity to support GOL’s execution of its business plan.
he Company is now positioned to emerge from the process with:
- Meaningfully strengthened balance sheet: Upon emergence, GOL will move forward with a strong liquidity position of approximately US$ 900M and significantly reduced leverage of 5.4x at exit, and projected net leverage of 2.9x by year-end 2027.
- Overhauled all-Boeing 737 fleet on track to return to pre-pandemic domestic capacity: In 2024, GOL overhauled over 50 engines and remains on track to have all aircraft in the air by the first quarter of 2026. The Company also continues to strengthen its fleet, with expected delivery of five additional Boeing 737 MAX in 2025.
- Positive business momentum built on recent outperformance: As a result of the fleet overhaul, in the fourth quarter of 2024 and first quarter of 2025, GOL’s operational and financial performance has exceeded the expectations previously outlined in its 5-Year Plan, with strong and growing demand translating to 17.4% year-over-year recurring EBITDA growth and 19.4% year-over-year net revenue growth in the first quarter.
Having secured confirmation of its Plan, GOL is now focused on completing the final steps necessary to complete its exit from the Chapter 11 process, including its shareholders’ meeting to approve the capital increase contemplated under the Plan, which will take place on May 30, 2025.
Following implementation of the Plan, Abra will remain GOL’s largest indirect shareholder.
