Brazilian Airline Gol Strikes Deal with Abra

SAO PAULO (Reuters) – Brazilian airline Gol announced on Wednesday that it has signed an agreement with shareholder Abra to strengthen its restructuring plan and secure credit to exit bankruptcy. This deal includes the conversion of $950 million in Abra's secured debt into Gol shares.

Abra is the main investor in Gol and Avianca. This agreement is linked to Gol's Chapter 11 filing made in January.

Gol plans to present a restructuring plan aimed at significantly reducing its leverage. The airline intends to convert or extinguish up to $1.7 billion of its existing pre-Chapter 11 debt and approximately $850 million in other obligations.

Abra has agreed to receive around $950 million in new Gol shares, contingent on resolving certain outstanding issues, along with $850 million in restructured debt.

According to the agreement, Gol aims to raise up to $1.85 billion in new capital through a Chapter 11 exit credit line to fulfill debtor-in-possession obligations and enhance liquidity for future strategies.

Gol expressed its hope to present the reorganization plan to exit Chapter 11 before the end of the year and projects to complete the exit by the end of April 2025.