GOL enters final phase of restructure

GOL Linhas Aéreas Inteligentes has begun the final component of its restructuring programme, which started in mid-2015.The phase includes the restructuring of up to US$780m of unsecured bonds issued in the international capital markets, which gives GOL's USD unsecured bondholders the opportunity to exchange their securities for new secured bonds at a premium to their current market value.Edmar Lopes, GOL's chief financial officer, explained, “GOL's offer to exchange all of its outstanding unsecured USD bonds for new secured bonds, with collateral covering more than 100% of the new bonds in addition to a cash component, and at a premium to current market value, is a great opportunity for GOL's bondholders to voluntarily participate in its restructuring and receive a premium for their bonds.“We strongly believe that this is a good and fair offer and the best that GOL can provide, and we expect that bondholders will understand that it is in their best interest to exchange their Notes,” continued Lopes. “The threshold is set by the Company, and we can change it if circumstances call for it.” The wider plan has seen the airline restructure over R$17 billion of debt and other obligations, with a shareholder equity infusion of US$150 million, raising US$100 million from its controlling shareholders, who maintained their equity stake at 63%, and US$50 million from GOL's strategic partner, Delta Airlines, which increased its equity stake to 9.5%.

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