GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas) announced on March 24 that it had secured a commitment from investors to provide up to USD1.25 billion in financing as part of a USD1.9 billion exit financing package from its Chapter 11 restructuring.
The financing will be used to repay existing obligations, cover transaction costs, and provide working capital after emerging from bankruptcy, which is expected to take place later this year.
Investment advisers Castlelake and Elliott Investment Management committed the funds on behalf of their clients, Reuters reported. The minimum commitment amount from the two is USD750 million.
Additionally, GOL is considering alternative financial transactions, such as new debt issuance or equity investments, and it is considering opportunities presented by prospective financial investors, such as credit or private equity funds and other strategic investors, with the goal of emerging as a well-capitalised, standalone company, it said in a notice to the market.
Finally, GOL said it would deleverage its balance sheet by converting up to USD1.7 billion from its pre-petition funded debt, and up to USD850 million of other obligations in debt into equity, which will result in a significant dilution of the company’s existing equity.
