Gol Linhas Aereas Inteligentes entered into an exit financing commitment with certain investors, the Brazilian airline said on March 24, 2025. The investors were not disclosed in the filing.
The commitment parties have committed to purchase up to $1.25bn of the $1.9bn in debt instruments to be issued as part of its chapter 11 proceedings and will be used to repay obligations under a debtor-in-possession (DIP) financing.
The DIP financing was used to pay transaction costs and to provide working capital and financing for the company's operating activities following the conclusion of its chapter 11 proceedings.
“In addition to proposals related to the exit financing, alternative transactions that are viable and competitive are being evaluated,” Gol said in its filing.
The company, along with its advisors, is considering alternatives such as both the contracting or issuance of new debt by the company and its subsidiaries, as well as possible investments in equity participating — directly or indirectly — considering opportunities presented by potential financial investors — credit or private equity funds — and other strategic investors, whether national or foreign capital.
The company said these evaluations are based on “the objective of emerging from its chapter 11 proceeding as an independent and capitalised company”.
“Gol will significantly reduce its indebtedness by converting into equity or extinguishing up to approximately $1.7bn of its debt funded prior to the commencement of the chapter 11 proceeding and up to approximately $850 million of other obligations,” the company reiterated its plan in the filing. “Thus, considering that the conversion will be carried out based on the economic value of Gol's shares prior to the conversion, in accordance with applicable law, a significant dilution of Gol's currently outstanding shares is expected.”
Gol had previously detailed its five-year plan in January 2025, ahead of its chapter 11 exit, which is expected in May this year. The company expects to reach net debt to EBITDA of 1.9x by the end of 2029.