GOL details a new five-year plan ahead of its Chapter 11 exit

GOL Linhas Aéreas Inteligentes (GOL) has outlined a new five-year financial plan, which is expected to serve as the foundation for the company’s standalone legal plan for reorganisation under Chapter 11.

The Brazilian airline detailed the plan in a securities filing, noting that the airline expects to emerge from Chapter 11 in May of this year.

The plan builds on GOL's Chapter 11 reorganisation filing submitted to the US Bankruptcy Court in December, following its initial filing in early 2024.

GOL expects to see its net leverage "substantially improving" going forward as it rebuilds its network and returns to "normal levels" of core earnings by next year.

The plan includes the conversion of a significant portion of GOL’s financial debt into equity, in accordance with the terms previously disclosed by GOL, and the successful completion of a planned $330 million exit equity capital raise, combined with a $1.54 billion new five-year exit debt financing raise.

This aims to repay the existing debtor-in-possession financing and will add incremental liquidity to GOL’s balance sheet.

“We are pleased to be taking another step forward in our financial restructuring plan,” said Celso Ferrer, GOL’s chief executive officer.

He continued: “Since commencing this process last year, we have secured lessor concessions, addressed maintenance and past-due liabilities, launched a profit improvement plan, and reached agreements with key stakeholders which, when implemented through the plan of reorganization, will deleverage GOL’s balance sheet.”

Net leverage is expected to improve as a result of the company rebuilding its lines of flying and EBITDA production to normal levels by 2026, reaching 2.7x by the end of 2027 and 1.9x by the end of 2029.

As part of the five-year plan, the airline plans to expand its network, both domestically and internationally, and projects the growth of its fleet to 167 aircraft by 2029, while investing in its existing fleet in the near term.

GOL expects to launch a pre-emptive rights offering after existing Chapter 11 in May.