The United States Justice Department has given preliminary approval to the Brazilian airline Gol to access a loan of 950 million dollars (about 877.1 million euros). This decision comes after the company voluntarily filed for Chapter 11 bankruptcy in the United States. This move is the first step in the legal financial restructuring of the company, according to a statement released by Brazil’s largest airline by domestic flights.
The credit, granted under the debtor-in-possession modality, was contributed by members of the group of owners of securities of Abra, the conglomerate that controls Gol and the Colombian Avianca. The next step for Gol is to request final approval to fully access the financing in a hearing that will be held in the coming weeks.
With the provisional approval, Gol will have immediate access to the available part of the new liquidity. This will allow the company to meet all commitments with business partners, suppliers, and the payment of salaries to employees. The CEO of the airline, Celso Ferrer, stated that obtaining the authorization “will allow Gol to continue operating normally.”
Gol is in need of restructuring its debt, which amounted to 20.2 billion reais (about 3.803 million euros) as of September of last year. The news about the preliminary approval of the financing comes amid the collapse of the company’s preferred shares on the São Paulo stock exchange, which ended with an abrupt drop of 33%. However, Gol’s shares do not have to be withdrawn from the Brazilian market because the request was made before the United States Justice.
This development is crucial for Gol as it navigates through its financial challenges. The airline is working towards a sustainable solution to its debt and is taking the necessary steps to ensure its continued operations. The approval of the loan will provide Gol with the necessary liquidity to maintain its business operations and meet its financial obligations.
The airline industry has been severely impacted by the global pandemic, and Gol is no exception. The company has faced significant financial strain due to the decline in air travel and the resulting decrease in revenue. However, with the support of the United States Justice Department, Gol is taking proactive measures to address its financial difficulties and emerge stronger from this challenging period.
In conclusion, the preliminary approval of the loan for Gol is a positive development for the airline as it seeks to restructure its debt and secure its financial stability. The company is committed to overcoming its financial challenges and is working towards a sustainable solution. With the support of the United States Justice Department, Gol is well-positioned to navigate through this difficult period and emerge as a stronger and more resilient airline.
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