Gol obtains judicial approval for US$1 billion loan in recovery plan in the USA – 02/28/2024 – Market

Gol received approval from a US court this Wednesday (28) for a US$1 billion loan, after resolving concerns from a group of creditors who feared being overlooked in the operation.

Gol was already awaiting authorization for a US$950 million “debtor in possession” (DIP) loan as part of its judicial recovery plan in the US, but allowed creditors who contested the DIP to contribute an additional US$50 million in the new financing and receive interest on the new debt, said Gol’s lawyer, Justin Cunningham, at a hearing in New York.

U.S. Bankruptcy Court Judge Martin Glenn approved the loan at the hearing, saying he was pleased to see a settlement. “It’s good when more people want to invest,” he said.

Gol filed for judicial recovery in the US on January 25, pressured by high debts still under the impacts of the pandemic, in addition to delays in deliveries of Boeing 737 Max aircraft to meet an increase in demand.

Glenn had already approved a first tranche of the company’s financing package, allowing Gol to borrow up to US$350 million at a hearing in January.