GOL Linhas Aereas Inteligentes S.A.: $1.9B Exit Financing and June 2025 Emergence

GOL Linhas Aereas Inteligentes S.A. filed for chapter 11 on January 25, 2024 in the U.S. Bankruptcy Court for the Southern District of New York, starting a cross-border restructuring aimed at reducing funded debt and stabilizing liquidity. The airline group emerged on June 6, 2025 with a $1.9 billion five-year exit financing package and a plan that reduced debt by roughly $1.6 billion, leaving Abra Group as the controlling shareholder with about 80% of the reorganized equity. filed chapter 11 emerged on June 6, 2025 $1.9 billion exit financing debt reduction of about $1.6 billion Abra controls about 80%

GOL is Brazil's largest independent low-cost airline with an all-Boeing 737 fleet and a network of 65 domestic and 16 international destinations. The company reported about 30 million passengers in 2024 and said it delivered the best on-time performance in Brazil that year. Its Smiles loyalty program and GOLLOG cargo business are material contributors, with Smiles reporting 24 million customers and 5.3 billion reais in 2024 revenue and GOLLOG reporting more than 1 billion reais in annual revenue and a 36% market share. largest independent low-cost airline 30 million passengers 65 domestic and 16 international destinations best on-time performance in Brazil Smiles 24 million customers GOLLOG revenue and share

Debtor(s)	GOL Linhas Aereas Inteligentes S.A. (lead debtor; jointly administered group)
Court	U.S. Bankruptcy Court, Southern District of New York
Case Number	24-10118
Judge	Hon. Martin Glenn
Petition Date	January 25, 2024
Confirmation Date	May 21, 2025
Effective Date	June 6, 2025
Pre-Petition Assets	About $3.5 billion
Pre-Petition Liabilities	About $8.3 billion
DIP Facility	Up to $1.0 billion (DIP notes structure)
Exit Financing	$1.9 billion 5-year facility
Debt Reduction	About $1.6 billion
Post-Emergence Control	Abra Group about 80%
Employees	About 14,500
Fleet	139 Boeing 737 aircraft

Restructuring plan and confirmation

GOL's restructuring spanned 17 months and moved from first-day liquidity stabilization to a plan framework anchored by Abra Group and an exit financing raise. The company filed chapter 11 on January 25, 2024 and received court approval for a $1.0 billion DIP facility in late February 2024. A plan support agreement with Abra was announced in November 2024, and the debtors filed a joint plan and disclosure statement in December 2024. The court confirmed the plan on May 21, 2025, and the plan became effective on June 6, 2025, when the exit financing closed and distributions could begin. plan support agreement announced plan filed in December 2024 court approval of plan effective date June 6, 2025

DIP financing and early-case liquidity. Court filings show the final DIP order authorized postpetition financing up to $1.0 billion in aggregate. The structure included $350.0 million of interim DIP term loans exchanged for $403.27 million of initial DIP notes (including capitalized fees and accrued interest), up to $200.0 million of final DIP order notes, and additional incremental notes such that total additional notes did not exceed $650.0 million. The borrower was GOL Finance (Luxembourg), with guarantees from key operating and holding entities, and the order granted superpriority administrative expense status and a priming lien package on certain collateral. The order also required compliance with an approved budget and provided adequate protection to prepetition secured parties.

Plan support framework and debt reduction. In November 2024, GOL and Abra entered a plan support agreement that contemplated converting up to $1.7 billion of prepetition funded debt to equity and extinguishing up to $850 million of other obligations, a framework described as reducing total debt by about $2.5 billion. The public disclosures around the plan support agreement and later plan iterations positioned Abra as the central equity backer and a provider of take-back debt, with a portion of that debt set to convert to equity after a post-emergence period. plan support agreement debt conversion and take-back debt overview

The plan support agreement followed months of negotiations with lessors and other creditors. GOL sought a 150-day extension in October 2024 to finalize the plan and disclosed that it had reached lease negotiations covering 139 aircraft and 58 engines, along with additional liquidity during the case. Those negotiations informed the plan's treatment of lease obligations and the path to fleet normalization after emergence. lease negotiations covering 139 aircraft and 58 engines

Plan structure and confirmed mechanics. The confirmed plan approved multiple settlements, including agreements tied to Abra and specific secured noteholder groups. The confirmation order authorized issuance and distribution of new equity and approved a preemptive rights offering process for eligible holders. The plan definitions set a pre-dilution specified value component anchored by a $950 million equity value component and established a general unsecured claimholder distribution pool valued at roughly $281 million in new equity, with allocation percentages across debtor entities. Those mechanics were part of the confirmed plan documentation and the confirmation order.

The solicitation-era disclosure statement described a restructuring framework that included converting or extinguishing about $1.7 billion of funded debt and up to $850 million of other obligations, along with a plan capital raise that could reach $1.85 billion. That disclosure statement also provided estimated recoveries for certain secured noteholder classes, including a 65% estimate for the 2028 notes and a 40% estimate for the 2026 senior secured notes. Those estimates were part of the plan solicitation record and were framed as projections based on the then-current plan structure; the confirmed plan later formalized equity allocation mechanics and the final capital raise terms. This sequence highlights how the case moved from a negotiated framework to a confirmed structure, with the disclosure statement serving as the bridge between preliminary creditor agreements and final confirmation terms.

Exit financing, capital increase, and emergence. GOL raised a $1.9 billion five-year exit facility with a 14.375% interest rate, anchored by Castlelake and Elliott Investment Management for $1.25 billion of the total commitment. The remaining commitments included a $50 million allocation from an ad hoc group of secured noteholders and $570 million from other investors, alongside a $30 million rights offering new money commitment. GOL also announced a capital increase of more than R$12 billion associated with the plan and said its shares would trade under new tickers on B3 starting June 12, 2025. exit financing terms capital increase and new tickers

Post-emergence positioning. The emergence press release described about $900 million of liquidity at exit, leverage reduced to 5.4x, and a target to bring net leverage below 3x by year-end 2027. The company also said it had overhauled more than 50 engines in 2024 and expected the fleet to be fully operational by the first quarter of 2026, with five Boeing 737 MAX deliveries expected in 2025. post-emergence liquidity and leverage

Regional context. GOL was the second Brazilian carrier to emerge from a U.S. restructuring process in five years, following LATAM Airlines Brasil's emergence in November 2022. second Brazilian carrier to emerge

Travel industry coverage described the restructuring as a 17-month process that delivered $1.9 billion of financing and reduced debt by about $1.6 billion. That framing underscores that the plan was not a short-form proceeding but a full-length chapter 11 case that required a multistep capital raise and negotiated creditor settlements. 17-month restructuring

Capital structure and liquidity pressures before filing

Court filings report that as of December 31, 2023, GOL had approximately $3.5 billion in assets and $8.3 billion in liabilities, leaving negative stockholders' equity of roughly $4.8 billion. Filings also report funded indebtedness and lease obligations of about $4.2 billion, with secured indebtedness of about $2.1 billion. The capital structure included multiple series of secured notes, debentures, and exchangeable instruments, along with unsecured bonds and credit facilities. The debt mix below summarizes the principal instruments described in the filings.

The filings also describe GOL as a holding company with publicly traded preferred shares on Brazil's B3 exchange under the ticker GOLL4 and ADRs on the NYSE under the ticker GOL. Abra Group Limited is described as holding a 53% economic interest prepetition and as a key stakeholder in the restructuring, including through its ownership of certain secured notes. Those ownership and capital market connections influenced both the plan support structure and the equity allocation mechanics in the confirmed plan.

Debt mix and maturity profile. The secured stack combined high-coupon cash and PIK interest with exchangeable features and amortizing repayment schedules. The 2028 senior secured notes carried an 18.00% coupon split between cash pay and PIK interest, while the 2028 senior secured exchangeable notes layered exchangeability on top of similar collateral and interest terms. The 2026 senior secured amortizing notes, the 2025 subordinated amortizing notes, and the Brazilian debentures required quarterly or monthly amortization, which pulled cash forward compared with a single bullet maturity. On the unsecured side, the 2024 senior exchangeable notes and 2025 senior notes were approaching maturity at the time of filing, and the perpetual notes added an ongoing fixed coupon obligation that did not amortize. This combination of near-term maturities, amortization schedules, and high coupons limited liquidity and increased the urgency of refinancing or restructuring. Lease obligations and operating liabilities. Filings report aircraft and engine lease obligations of about $1.95 billion, with approximately $360 million due within 12 months as of the end of 2023. The company also reported material operational liabilities such as navigation fees. At filing, GOL reported operating 141 aircraft and leasing 64 spare engines. Those lease and maintenance obligations placed near-term liquidity pressure on the operating company and influenced the scale of the restructuring.

Liquidity stress drivers described in filings. GOL attributed the filing to a mix of COVID-era deferrals and arrears, fuel price volatility, BRL/USD foreign exchange pressures, higher interest rates, and a tightening of Brazilian credit markets in 2023 that reduced refinancing options. Filings also cited maintenance and supply chain constraints and aircraft delivery delays that reduced available capacity and revenue generation. The interaction between lease obligations, maintenance costs, and currency exposure made liquidity management a central feature of the case from day one.

Operations, fleet, and commercial footprint

GOL was founded in August 2000 by the Constantino family and started operations on January 15, 2001 with four Boeing 737-700 aircraft. The carrier's first route was Brasilia to Sao Paulo, and it completed an initial public offering in 2004. The company acquired Varig in March 2007 and later launched a fleet renewal strategy centered on Boeing 737 MAX aircraft, including a major order announced in 2012. founded in 2000 operations began in 2001 IPO in 2004 Varig acquisition 737 MAX order

Court filings describe a domestic Brazil network built around hubs in Sao Paulo, Rio de Janeiro, and Brasilia, with access to slot-controlled airports such as Congonhas and Santos Dumont. The filings also describe a single narrow-body Boeing 737 fleet and a fleet renewal program centered on 737 MAX aircraft, a strategy that shaped both the company's growth plans and the operational constraints it cited in the chapter 11 case.

GOL's network and scale are built around a single-family fleet and a high-frequency domestic network. The company reported a fleet of 139 Boeing 737 aircraft and about 14,500 employees, with approximately 30 million passengers in 2024 across 65 domestic and 16 international destinations. Those metrics reflect the company's role as Brazil's largest independent low-cost carrier and the breadth of its local and regional connectivity. fleet of 139 Boeing 737 aircraft about 14,500 employees about 30 million passengers 65 domestic and 16 international destinations

Loyalty and cargo businesses. GOL's Smiles loyalty program and GOLLOG cargo unit are material components of the business model and were emphasized in emergence communications. The company reported 24 million Smiles customers and record 2024 revenue of 5.3 billion reais for the loyalty program. GOLLOG reported annual revenue exceeding 1 billion reais and a 36% market share. These units provide diversified revenue streams beyond passenger tickets and have played a role in the company's broader turnaround narrative. Smiles customers and revenue GOLLOG revenue and share

The emergence materials framed these segments as core operating pillars alongside passenger service. Smiles' 24 million-customer base and 5.3 billion reais of 2024 revenue position the loyalty program as one of the larger consumer-facing loyalty platforms in Brazil, while GOLLOG's reported 1 billion reais in revenue and 36% market share indicate a cargo operation that extends beyond belly cargo on passenger aircraft. Those figures were highlighted in the company's public communications to show that the business was not solely dependent on ticket sales for cash generation. Smiles revenue profile cargo market share

Abra Group ownership and regional footprint. Abra Group, the parent of Avianca, held a majority economic interest in GOL before filing and became the controlling equity holder after emergence. The restructuring tied GOL more closely to Abra's broader Latin American airline holdings, even as GOL continued to operate as a distinct Brazilian carrier with its own fleet and commercial footprint. Abra Group ownership

Aircraft lease negotiations and fleet recovery

GOL's chapter 11 case revolved around a leased fleet and a constrained supply chain. Court filings report that the company operated 141 aircraft under lease agreements and leased 64 spare engines as of year-end 2023, with aircraft and engine lease obligations totaling about $1.95 billion and roughly $360 million due within 12 months. Those obligations, combined with maintenance delays and delivery timing for new aircraft, were central to the liquidity pressures described in the first day record.

By late 2024 the company reported progress on lessor negotiations. In October 2024 GOL sought a 150-day extension to file its plan and said it had finalized negotiations with lessors covering 139 aircraft leases and 58 engines, along with access to additional liquidity during the case. Those negotiations were framed as a prerequisite to finalizing plan terms and aligning the fleet plan with the capital structure reset. lease negotiations covering 139 aircraft and 58 engines

The emergence communications tied fleet recovery milestones to the broader restructuring timetable. The company said it overhauled more than 50 engines in 2024, expected the fleet to be fully operational by the first quarter of 2026, and expected delivery of five Boeing 737 MAX aircraft in 2025. These disclosures provide the clearest public timetable for capacity recovery after the plan went effective. engine overhauls and fleet timing

Exit financing provided the capital base for those operational steps. The $1.9 billion five-year exit facility closed on the effective date and was described as a source of post-emergence liquidity that also repaid DIP obligations. The financing package included commitments from Castlelake and Elliott Investment Management and additional commitments from other investors and a rights offering. exit financing package

Fleet normalization was also connected to service quality metrics. GOL said it achieved the best on-time performance in Brazil in 2024 and highlighted the ability to restore operations as maintenance capacity and aircraft availability improved. The company framed those operational metrics as evidence of stabilization alongside the capital structure reset. best on-time performance in Brazil

Claims administration, bar dates, and post-confirmation matters

The court appointed Kroll Restructuring Administration LLC as the claims and noticing agent effective as of the petition date. Under the appointment order, Kroll was authorized to receive and maintain proofs of claim, maintain the claims registers, provide electronic and physical claim filing interfaces, and distribute court notices to creditors and parties in interest. The court later authorized Kroll's retention as an administrative advisor for solicitation and balloting, distribution support, and other plan-related administrative services not covered by the claims agent order.

The claims agent order also established a process for maintaining public access to the claims register and required Kroll to serve as the interim custodian of court records for proofs of claim, while the Clerk of Court remained the official custodian under the statute. The order approved compensation and reimbursement on agreed terms, treated those fees and expenses as administrative expenses of the estates, and required court review of indemnification requests. The separate administrative advisor order covered plan-related functions such as ballot distribution, tabulation, vote certification, and distribution support, while limiting indemnification for misconduct and providing that the court's order governed over any inconsistent engagement terms. These two orders together framed the administrative infrastructure for claims processing and plan execution.

The bar date order entered on April 9, 2024 established a General Bar Date of June 14, 2024 at 11:59 p.m. Eastern Time and a Governmental Bar Date of July 23, 2024 at 11:59 p.m. Eastern Time. The order did not set a bar date for administrative expense claims. Holders of section 503(b)(9) claims were required to file by the General Bar Date, while rejection damages claims were due the later of the General Bar Date or 30 days after entry of a rejection order. Claims arising from amended schedules were due the later of the General Bar Date or 30 days after service of the amended schedules notice. The order required mailing and/or email of bar date notice packages within seven business days of entry and publication in the Wall Street Journal and Folha de Sao Paulo at least 28 days before the General Bar Date.

The bar date order also set out who was required to file. Creditors with claims not listed on schedules, claims scheduled as disputed, contingent, or unliquidated, claims asserted against a different debtor than shown on the schedules, or claims arising under insurance liability policies were required to file proofs of claim by the applicable bar date. The order carved out exceptions for holders whose claims were scheduled as undisputed, noncontingent, and liquidated in the correct amount and against the correct debtor, and for certain parties whose claims had already been allowed or paid in full by prior court order. Those mechanics governed the claims reconciliation process that continued after the plan went effective. Post-confirmation administration continued in the lead case. The reorganized debtors sought to close 12 affiliate cases while keeping the lead case open for claims administration and remaining distributions. The U.S. Trustee filed a notice of appeal from the confirmation order focused on release and injunction provisions, leaving the appeal to proceed after the plan went effective.

Frequently Asked Questions

When did GOL file chapter 11 and where?

GOL Linhas Aereas Inteligentes S.A. filed chapter 11 on January 25, 2024 in the U.S. Bankruptcy Court for the Southern District of New York. filed chapter 11

Why did GOL file for chapter 11?

Court filings attribute the filing to COVID-era deferrals and arrears, fuel price volatility, BRL/USD foreign exchange pressures, higher interest rates, a tightening Brazilian credit environment, and fleet maintenance and delivery constraints that reduced available capacity.

How large was GOL's balance sheet at filing?

Filings report about $3.5 billion in assets and about $8.3 billion in liabilities as of December 31, 2023, with negative stockholders' equity of about $4.8 billion.

What DIP financing did GOL obtain?

The final DIP order authorized up to $1.0 billion of postpetition financing structured as DIP notes, with superpriority administrative expense status and a priming lien package over certain prepetition collateral.

What did the plan support agreement with Abra provide?

The plan support agreement framework contemplated converting up to $1.7 billion of prepetition funded debt to equity and extinguishing up to $850 million of other obligations, with Abra receiving new equity and take-back debt. plan support agreement framework

What exit financing supported emergence?

GOL raised a $1.9 billion five-year exit financing facility with a 14.375% interest rate, anchored by Castlelake and Elliott Investment Management. exit financing terms

When did GOL emerge and who controls the reorganized company?

GOL's plan became effective on June 6, 2025, and Abra Group holds about 80% of the reorganized equity. effective date

What were the general and governmental bar dates?

The General Bar Date was June 14, 2024 at 11:59 p.m. Eastern Time, and the Governmental Bar Date was July 23, 2024 at 11:59 p.m. Eastern Time.

Who is the claims agent for GOL Linhas Aereas Inteligentes S.A.?

Kroll Restructuring Administration LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

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