Brazilian low-cost airline GOL Linhas Aéreas Inteligentes (GOL) is preparing to exit Chapter 11 restructuring with a “strengthened competitive position” after the United States Bankruptcy Court approved its reorganization plan.
In a statement released on May 20, 2025, GOL announced said it expected to complete the restructuring process in early June 2025 and is positioned to emerge with a “strong liquidity position of approximately $900 million.”
“GOL is well-positioned to deploy its rebuilt capacity both domestically and internationally by leveraging its significant presence in key Brazilian hubs,” the airline said.
Path to recovery
As part of the airline’s Chapter 11 process, GOL said it secured $1 billion in debtor-in-possession financing, which “bolstered liquidity”, which allowed GOL to “re-invest in its aircraft fleet”.
The company also said it negotiated concessions packages totaling $1.1 billion from lessors for all aircraft in GOL’s fleet. According to the airline, this included financial support to clear its maintenance backlog while also providing permanent savings on rent and end of lease obligations.
Moreover, the airline started a $181 million program to improve profits and made a deal with Abra Group and the Unsecured Creditors Committee to reduce its debt by about $1.6 billion and other obligations by around $0.8 billion.
GOL said it has reached an agreement with Brazilian authorities to cut unpaid taxes and other debts by about $750 million, which will help create around $184 million of liquidity through 2029.
The airline said it had also reached an agreement with Boeing to alter the purchase contracts, providing $262 million in concessions and extra funds until 2029.
What’s next for the airline?
As the US court has confirmed the plan, the airline is now “focused on completing the final steps” to exit the Chapter 11 process.
The airline also said a shareholders’ meeting to approve the capital increase is set for May 30, 2025. After the plan is implemented, Abra will continue to be GOL’s largest indirect shareholder.
GOL added that, under the terms of the plan, it will lower its debt by converting approximately $1.6 billion of its pre-Chapter 11 funded debt and around $850 million of other obligations into equity or eliminating them.
