It has emerged that GOL Linhas Aéreas has filed for Chapter 11 proceedings in the U.S bankruptcy courts, following an announcement made yesterday.
Chapter 11 is a legal process in America 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.
Without further ado, let’s get into it…
GOL Linhas Aéreas Files For Chapter 11 in the U.S…
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In a statement, GOL Linhas Aéreas said the following on this:
“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.”
Adding to this was Celso Ferrer, Chief Executive Officer of GOL:
“GOL has undertaken significant efforts to provide the best travel experience for our customers, while improving our profitability and financial position”.
“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.”
All eyes will be on how this process goes for the Brazilian carrier.
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