Gol seeks judicial recovery in the United States

The legal process begins with a financial commitment of 950 million dollars; All operations continue as normal, according to the company

A Objective announced on Thursday the 25th that it will voluntarily submit a request for judicial recovery in the Bankruptcy Court of WEin a process known as Chapter 11, to begin its financial restructuring.

According to the company, the legal process in the US begins with a debtor in possession (DIP) financing commitment of $950 million from members of Abra’s ad hoc bondholder group. ), its parent company and other creditors. The DIP is a type of loan that allows the company to cover operating expenses during the judicial protection phase.

In a market statement released this Thursday, the company says it will seek access to this financing as part of the first day hearing in the US Court, scheduled for the next few days.

The financing is subject to court approval and, according to Gol, with the cash generated from ongoing operations, it will provide substantial liquidity to support operations, which continue as normal, during the financial restructuring process.

The company says that with the support of the court-supervised process and the additional liquidity of the DIP financing, all of its operations continue as normal. Flights are operating as scheduled and airline tickets and reservations remain in place.

Following the announcement, Gol preferred shares reversed their downward trend and recorded a new low of R$6.50% (-2.26%). They entered the auction due to the maximum allowable fluctuation.

For the managing partner of L4 Capital, Hugo Queiroz, the market will first of all try to understand the impacts and methods with which the judicial recovery will be conducted and complex. “Only then the market will try to stabilize at a level. This is the cycle of a judicial recovery announcement,” he said.

In the statement, Gol said it will use the process to “restructure its short-term financial obligations and strengthen its capital structure for long-term sustainability.” “The company expects to emerge from this process with a significant capital investment, including a new $950 million in DIP financing, positioning itself to expand its position as a leading airline in Latin America,” the document reads./With Júlia Pestana

Source: Terra

Rose

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