Abra Group, parent company of Colombia’s avianca airlines (AV, Bogotá) and Brazil’s GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas), is set to meet with creditors and bondholders about its USD1.5 billion bonds as it looks to strike a comprehensive restructuring deal.
As first reported by Bloomberg News, which cited unnamed sources close to the matter, the holding company launched in 2022 is already looking to fix its balance sheet and is working with investment banker Rothschild Co on doing so. It has been the parent entity for GOL and avianca since March 2023 and is composed of two companies incorporated under the laws of England and Wales, Abra Mobi LLP and Abra Kingsland LLP, each holding 50% of the common shares.
ch-aviation contacted Abra Group, GOL Linhas Aéreas, and avianca airlines for comment.
In December 2023, GOL hired Seabury Capital to undertake “a broad review” of its capital structure. The operator was looking at how to manage liabilities, financial transactions, and other measures aimed at improving liquidity and adjusting the fleet in the short and medium term.
The Brazilian carrier received from controlling shareholder Abra Group in March 2023 a USD1.4 billion private placement. In August, the company informed its shareholders and the market that it had approved the issuance of warrants for the subscription of preferred shares, but with a substantial dilution risk, triggering negative reactions from investors.
Colombian partner avianca underwent Chapter 11 restructuring during the pandemic, emerging a leaner structure while adding new aircraft and earning market share in its home market after the bankruptcies of Viva Air Colombia and Ultra Air in 2023.
