GOL secures DIP financing

GOL Linhas Aéreas Inteligentes (GOL), the Brazilian domestic airline, received key approvals at the end of January from the United States Bankruptcy Court for the Southern District of New York granting approved interim access to the US$950 million in debtor-in-possession (DIP) financing that was committed by members of the Ad Hoc Group of Abra Bondholders, as well as certain other Abra bondholders. GOL said that it intends to seek final approval of the financing at a hearing “in the coming weeks” but that would have immediate access to part of the new liquidity. “With this approval, GOL will honor commitments to business partners and suppliers of goods and services provided on or after the filing date of January 25, 2024, and will continue paying employee salaries, wages and benefits,” GOL said in a filing. “We are pleased by this successful start to our legal financial restructuring,” said Celso Ferrer, Chief Executive Officer. “Obtaining the US Court’s authorization to access new financing will enable GOL to continue operating in the normal course, as we anticipated “GOL’s purpose is ‘Being the First for All’, and we initiated this process not only for the benefit of our Company and our Employees, but to make us an even stronger airline for our Customers, suppliers and all our partners. Moving forward with the support of our lenders, we are confident that we will continue to advance our long-term strategies, including improving affordability, the travel experience and Customer choice. We thank our talented team and dedicated partners, suppliers and passengers for their continued support.” GOL revealed the extent of its financial position on January 29, which placed its total debt at the end of the fourth quarter of 2023 at R$20.176bn, with shareholder equity value at a loss of R$23.35bn. GOL’s total assets were valued at R$16.832bn at the end of the year. In connection with its restructuring efforts, GOL is working with Milbank as legal counsel, Seabury Securities as restructuring advisor, financial advisor and investment banker, and AlixPartners as financial advisor.