A US bankruptcy court has approved the restructuring plan of GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas), paving the way for the airline's exit from Chapter 11 restructuring by early June 2025.

The approval was issued on May 20, shortly after the airline struck a final deal to secure USD1.9 billion in exit financing. The financing includes USD1.25 billion from Castlelake and Elliott Investment Management, which will be used to repay the USD1 billion debtor-in-possession financing from Abra Group bondholders.

GOL said that the planned capital increase will be put to a vote of shareholders on May 30.

Abra Group, the holding which also owns avianca airlines, will remain GOL's largest shareholder after the implementation of the plan. The airline said the restructuring will significantly reduce its indebtedness by converting into equity or extinguishing up to approximately USD1.6 billion of pre-restructuring debt and up to approximately USD850 million of other obligations.