Brazil’s Gol has struck a deal with creditors in a new agreement which resolves a prior dispute over how noteholders would be treated under the airline’s Chapter 11 reorganisation plan in the US.
The agreement, which involves a key group of bondholders holding Gol’s 8.00% Senior Secured Notes due in 2026, will provide $125 million to the company’s $1.9bn exit financing, according to a regulatory filing submitted by the airline.
Existing backers Castlelake and Elliott Investment Management have agreed to adjust their $1.25bn financing support. With these changes and the new commitments, the airline has now secured at least $1.375bn in financing to support its exit from Chapter 11.
Last month Gol stated that it had extended the deadline for investors to analyse its proposed $1.9bn exit financing plan, citing market volatility in the wake tariffs announced by US President Donald Trump earlier in April.
Under the updated terms, all 2026 noteholders who don’t participate in the new financing will receive their share of up to $100 million in take-back notes.
Gol plans to submit its updated reorganisation plan to the US Bankruptcy Court in the coming weeks and expects to emerge from Chapter 11 by June.