Company to Use United States Chapter 11
Process to Strengthen Financial Position
GOL Will Continue to Provide Safe and Reliable
Air Transportation Without Interruption
All Flights are Operating as Scheduled and All
Tickets and Reservations Remain in Place
Company Secures US$950
Million New Financing Commitment to Support the
Business
SÃO PAULO, Jan. 25,
2024 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes
S.A. ("GOL" or "Company") (B3: GOLL4, NYSE: GOL), today
announced that GOL and its subsidiaries have voluntarily filed for
Chapter 11 in the United States
Bankruptcy Court for the Southern District of New York (the "U.S. Court"). Chapter 11 is a
U.S. legal process that businesses use to raise capital,
restructure their finances and strengthen their business operations
for the long term, while continuing to operate as normal.
GOL enters the U.S. legal process with a financing commitment
for US$950 million in new
debtor-in-possession ("DIP") financing from members of the Ad Hoc
Group of Abra Bondholders, as well as certain other Abra
bondholders. The Company will seek access to this funding as part
of its First Day hearing in the coming days. The financing is
subject to court approval and, along with cash generated from
ongoing operations, will provide substantial liquidity to support
operations in the normal course during the Chapter 11 process.
With the support of the court-supervised process and the
additional liquidity from the DIP financing, GOL's passenger
flights, its GOLLOG cargo flights, Smiles Loyalty program and other
company operations are continuing in the normal course. The Company
will continue providing safe and reliable air travel service at a
low cost, providing the best travel experience to its customers.
Customers will be able to continue to arrange travel and fly in the
same manner they always have, including the use of tickets and
vouchers, and the accrual, purchase and use of miles earned through
Smiles. GOL's codeshare and interline agreements will also continue
to be available to customers.
"GOL has undertaken significant efforts to provide the best
travel experience for our customers, while improving our
profitability and financial position," said Celso Ferrer, Chief Executive Officer. "We have
made outstanding progress to date and believe that this process
will allow us to fully address the challenges caused by the
pandemic while we maintain our high standard of service to our
customers. This process will enable GOL to further expand our
position as a leading Latin American airline while maintaining our
purpose of 'Being the First for All.' We are confident the steps we
are taking will allow us to offer the lowest cost fares with
exceptional travel experiences to our customers across an
increasing number of routes. Our Employees will keep handling their
daily activities looking after GOL and the Safety and quality
of its flights. We are pleased to be moving forward with
commitments for new capital that will help advance our long-term
strategies, including improving affordability, the travel
experience and Customer choice."
GOL will use this process to restructure its near-term financial
obligations and strengthen its capital structure for long-term
sustainability. The Company expects to emerge from this process
with a significant investment of new capital, inclusive of the new
US$950 million in DIP financing,
enabling GOL to expand its position as a leading airline serving
Latin America.
Despite challenges to its capital structure and in a scenario of
lower aircraft availability, GOL's operating performance remains
strong. In 3Q23, GOL delivered among the best operating results for
airlines in Latin America, and the
fourth consecutive quarter of high and consistent operating
margins. The company's net operating revenue reached a historic
record of R$4.7 billion, with growth
of 16.4% compared to the same period of the previous year,
primarily due to the significant contribution of revenues coming
from the Smiles and GOLLOG cargo operations, which together grew a
total of 65.1% in 3Q23 (vs. 3Q22) and totaled R$412.6 million in the period. In December 2023, the occupancy rate reached 82.7%,
an increase of 4.8% compared to the same period of the previous
year. GOL's operational indicators related to punctuality,
regularity, occupancy rates and daily use of the operational fleet
demonstrate its focus on efficiency and productivity, even in a
scenario of lower aircraft availability.
Protecting our Employees
GOL will continue to operate normally during the supervision
process conducted by the U.S. Court. The Company will pay salaries
and benefits to Employees normally throughout this process, as
nothing will change in the routine activities of our Employees.
Protecting our Suppliers and All Our Partners
GOL's business will continue as normal during the U.S. Court
oversight process and the company will honor commitments to
business partners and suppliers of goods and services provided on
or after the Chapter 11 filing date.
Continuing to Serve Customers as Usual
GOL customers should continue to arrange travel and fly in the
same manner they always have, including the use of tickets and
vouchers. GOL customers will continue to accrue miles when they fly
with GOL and can continue to purchase and redeem miles earned
through Smiles. GOL plans to honor customer obligations, including
ticket refunds, travel coupons and payments or credits associated
with baggage or service claims, in adherence with the Company's
current policies.
Information on Chapter 11
The U.S. Chapter 11 process is a well-established and flexible
legal framework for restructuring businesses with operations in
multiple jurisdictions. The legal process allows for companies to
strengthen their financial position while continuing to operate as
usual, subject to supervision and approval by the U.S. court
system. The Chapter 11 process has been used successfully by many
international airlines, including LATAM, United Airlines, Delta,
Aeroméxico and Avianca Colombia.
GOL is confident that this process is in the best interests of
its stakeholders, including employees and customers, who will
continue to benefit from the Company's affordable, safe and
reliable flights as well as its best-in-class service.
Additional Information
Additional information regarding the Company's court-supervised
process is available at www.GolFirstForAll.com.
Court filings and other information related to the proceedings
are available on a separate website administrated by the Company's
claims agent, Kroll Restructuring Administration LLC ("Kroll"), at
https://cases.ra.kroll.com/GOL, or by calling Kroll at 844.553.2247
(U.S./Canada) (toll free) or
+1.646.777.2315 (International).
Advisors
In connection with its restructuring efforts, GOL is working
with Milbank LLP as legal counsel, Seabury Securities LLC as
financial advisor and investment banker, and AlixPartners, LLP as
financial advisor.
Investor Contact
ri@voegol.com.br
www.voegol.com.br/ir
+55 (11) 2128-4700
U.S. Media Contact
Joele
Frank, Wilkinson Brimmer Katcher:
Leigh Parrish / Jed Repko
lparrish@joelefrank.com / jrepko@joelefrank.com
+1 212 355 4449
South America Media Contact
In Press Porter
Novelli
gol@inpresspni.com.br
About GOL Linhas Aéreas Inteligentes
S.A.
GOL is the main Brazil airline. Since it was founded in 2001,
the Company has the lowest unit cost in Latin America, thus democratizing air
transport. The company has alliances with American Airlines and Air
France-KLM, besides several codeshare and interline agreements,
available to Customers, bringing more convenience and simple
connections to any place served by these partnerships. With the
purpose of "Being the First for All", GOL offers the best travel
experience to its passengers, including: the largest number of
seats and more space between seats; the greatest platform with
internet, movies and live TV; and the best frequent-flyer program,
SMILES. In cargo transportation, Gollog delivers orders to
different regions in Brazil and
abroad. The Company has a team of over 14,000 highly qualified
aviation professionals focused on Safety, GOL's #1 value, and
operates a standardized fleet of 141 Boeing 737 aircraft. For
further information, visit www.voegol.com.br/ri.
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SOURCE GOL Linhas Aéreas Inteligentes S.A.