Latest news with #GOL
Malaysian Reserve
5 hours ago
- Business
- Malaysian Reserve
GOL Emerges from United States Chapter 11 Process as a Stronger, More Competitive Airline
SíO PAULO, June 6, 2025 /PRNewswire/ — GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4) ('Company' or 'GOL'), a leading Brazilian airline, hereby announces that it has successfully completed the financial restructuring of the Company and its subsidiaries in accordance with the Chapter 11 of the U.S. Bankruptcy Code, and has emerged from the process overseen by the United States Bankruptcy Court for the Southern District of New York. 'Over its more than 20 years of history, GOL —Latin America's original low-cost carrier— has transformed the Latin American airline market. With our financial restructuring process now complete, we are ready to continue driving forward on our purpose of 'Being First for All,' said Celso Ferrer, Chief Executive Officer. 'Today, we are significantly stronger. We have rationalized our fleet, optimized our costs, redesigned our network, enhanced our operational focus, and driven management efficiencies which —supported by solid customer preference, robust demand, and a five-year plan that will bring more investments in customer experience as well as new routes— will allow us to continue to drive success. We look forward to capitalizing on the opportunities we see ahead for GOL.' 'Thanks to the hard work of hundreds of people, we have achieved what we set out to accomplish when we first entered this process last year,' Mr. Ferrer continued. 'I thank our employees, customers, lessors and financial stakeholders —especially Abra, our largest shareholder— for their support throughout this process, which has been instrumental in helping us succeed.' As GOL enters its next phase, the Company is well-positioned to continue expanding its position as a leading airline serving Latin America, built on its: Strengthened financial position: Having secured US$ 1.9 billion in exit financing during the court-supervised process and repaying its DIP maturity in full, GOL is now moving forward with a strong liquidity position of approximately US$ 900M, significantly reduced leverage of 5.4x, and projected net leverage below 3x by year-end 2027. With a meaningfully strengthened balance sheet, GOL is well-positioned to invest in continued enhancements to the customer experience and further network expansion. Leading loyalty program: Smiles, GOL's loyalty platform, celebrated 30 years of a solid journey in 2024. The business unit reached 24 million customers and achieved the highest revenue in its history, totaling 5.3 billion reais. Strong market position and best-in-class On-Time Performance: In 2024, GOL was the most on-time airline in Brazil and served 30 million passengers across 65 domestic destinations and 16 international destinations. Growing network supported by strong global partnerships: GOL is well-positioned to deploy its rebuilt capacity both domestically and internationally by leveraging its significant presence in key Brazilian hubs. In particular, its strategic global partnerships allow for adding new service profitably to new or underserved domestic and international routes. Abra support: The renewed commitment of Abra Group, one of the leading airline groups in Latin America -with investments in Avianca, GOL, and Wamos- provides significant know-how, financial support, and operational and financial synergies. Cooperation with other Abra airlines will allow GOL to provide customers with enhanced connectivity, new and innovative product offerings, and increased frequent flyer program opportunities and benefits. Logistics Operation: GOLLOG – GOL's logistics unit and market share leader with a 36% share – surpassed, for the first time in its history, R$ 1 billion in annual revenue, achieving a 32% growth compared to 2023. Overhauled, all-Boeing 737 fleet: In 2024, GOL overhauled over 50 engines and remains on track to have all aircraft in the air by the first quarter of 2026. The Company also continues to grow its capacity, with delivery of five Boeing 737 MAX expected in 2025. Pursuant to the powers delegated to the Company's Board of Directors by the Extraordinary General Meeting of Shareholders held on May 30, 2025 ('General Meeting'), in connection with the Company's capital increase through the capitalization of credits approved by the General Meeting ('Capitalization'), the Board of Directors, at a meeting held on the date hereof, verified the amount of such credits in local currency and determined that the Capitalization amounts to BRL 12,029,337,733.91, comprising the issuance by the Company of 8,193,921,300,487 common shares and 968,821,806,468 preferred shares. In accordance with the Law No. 6,404, of December 15, 1976 ('Brazilian Corporations Law'), the Company's shareholders are entitled to preemptive rights in the subscription of shares under the Capitalization, pursuant to Article 171, paragraph 2, of Brazilian Corporations Law ('Preemptive Rights'). Further information on the Capitalization, including the terms, procedures and conditions for the exercise of Preemptive Rights by the Company's shareholders, is disclosed and available in the notice to shareholders disclosed by the Company on the date hereof, in compliance with applicable laws and regulations. As a result of the Capitalization, Abra Group Limited controls the Company and now holds, directly or indirectly, approximately 80% of GOL's common and preferred stock (subject to variation that may result from the exercise of Preemptive Rights by other shareholders, if applicable). Due to the implementation of the Preemptive Rights, under the terms and conditions of the Capitalization, as of June 12, 2025, the Company's shares will, in addition to being traded 'ex-Preemptive Rights', also be traded on the Brazilian Stock Exchange ('B3') under a new quotation factor (BRL per 1,000 shares), a new standard trading lot (1,000 shares), new tickers, and new ISIN codes, as detailed below: GOLL53 – Common Shares | ISIN: BRGOLLA01OR8 GOLL54 – Preferred Shares | ISIN: BRGOLLA01PR5 The current tickers GOLL3 and GOLL4 will be automatically converted into GOLL53 and GOLL54, respectively, both adopting a quotation factor and standard trading lot of 1,000 shares. The trading with the Preemptive Rights on B3, which will begin on June 12, 2025, will also follow a standard trading lot of 1,000 rights, with the quotation factor being BRL per lot of 1,000 rights. The Company's subscription warrants, which trade under on B3 the ticker GOLL13, will be automatically converted into GOLL80 (ISIN BRGOLLN04PR2) starting June 12, 2025. Such warrants will then be traded in lots of 1,000, with a quotation factor of R$ per lot of 1,000 warrants. The terms and conditions for exercising the subscription warrants remain applicable as established in the Board of Directors' meeting that approved the respective issuance. GOLL53 – Common Shares | ISIN: BRGOLLA01OR8 GOLL54 – Preferred Shares | ISIN: BRGOLLA01PR5 In addition, the Board of Directors approved, on the date hereof, the dissolution of the Company's Special Independent Committee, deeming that its duties have been fully fulfilled. The Company also notes that, on the date hereof, Mr. Ricardo Constantino and Mr. Paul Stewart Aronzon resigned from their position in the Company's Board of Directors, and Mr. Manuel José Irarrázaval Aldunate was appointed as member of the Board of Directors. Due to the resignation of Mr. Ricardo Constantino, Mr. Antonio Kandir was appointed as the new Vice President of the Board of Directors. Advisors In the context of its restructuring efforts, GOL worked with Milbank LLP as legal advisor, Seabury Securities, LLC as investment banker, lead placement agent for the US$ 1.9 billion exit notes, and financial advisor, BNP Paribas Securities Corp. as bookrunner (B&D) and placement agent for the exit notes, and AlixPartners, LLP as financial advisor. In addition, Lefosse Advogados acted as GOL's Brazilian legal advisor. Abra worked with Wachtell, Lipton, Rosen & Katz as legal counsel and Rothschild & Co as financial advisor in connection with the restructuring. In addition, Pinheiro Guimarães served as Abra's Brazilian counsel and Slaughter & May as Abra's English counsel. Special note regarding forward-looking statements This material fact contains certain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. The words 'will,' 'maintain', 'plans' and 'intends' and similar expressions, as they relate to GOL, are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Undue reliance should not be placed on such statements. Forward-looking statements speak only for the date they are made. About GOL Linhas Aéreas Inteligentes S.A. GOL is one of Brazil's leading airlines and is part of the Abra Group. Since it was founded in 2001, the company has had the lowest unit cost in Latin America, democratizing air transport with the aim of 'Being the First for All'. GOL has alliances with American Airlines and Air France-KLM and offers customers more than 60 codeshare and interline agreements, making connections to any place served by these partnerships more convenient and easier. GOL also has the Smiles loyalty program and GOLLOG for cargo transportation, which serves various regions in Brazil and abroad. The company has 14,5 thousand highly qualified professionals focused on safety, GOL's number one value, and operates a standardized fleet of 139 Boeing 737 aircraft. The Company's shares are traded on B3 (GOLL4). For further information, visit About Abra Group Abra, a UK-based company, is one of the most competitive air transport groups in Latin America. It brings together the iconic Gol and Avianca brands under a single leadership and a strategic investment in Wamos Air, anchoring an airline network that has one of the lowest unit costs in its respective markets, leading loyalty programs across the region (LifeMiles and Smiles) and other synergistic businesses. In addition, Abra has a convertible debt representing a minority stake investment in Sky Airline Chile. The Group consolidates a team of around 30,000 highly qualified aviation professionals and a fleet of more than 300 aircraft, with scheduled flights serving 25 countries and more than 150 destinations. Gol is one of Brazil's leading airlines, operating a standardized fleet of 138 Boeing 737 aircraft and employing 13,900 highly qualified professionals. Avianca, the second oldest airline in the world, operates more than 140 A320 and B787 passenger aircraft, as well as 7 cargo aircraft, and has more than 14,000 employees. Finally, Wamos Air is Europe's leader in wide-body ACMI operations, operating 13 A330 passenger aircraft. For more information, visit GOL Media Contacts U.S. Joele Frank, Wilkinson Brimmer Katcher: Leigh Parrish / Jed Repko lparrish@ / jrepko@ South America In Press Porter Novelli gol@ GOL Investor Relations ir@
Yahoo
5 hours ago
- Business
- Yahoo
GOL Emerges from United States Chapter 11 Process as a Stronger, More Competitive Airline
SíO PAULO, June 6, 2025 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4) ("Company" or "GOL"), a leading Brazilian airline, hereby announces that it has successfully completed the financial restructuring of the Company and its subsidiaries in accordance with the Chapter 11 of the U.S. Bankruptcy Code, and has emerged from the process overseen by the United States Bankruptcy Court for the Southern District of New York. "Over its more than 20 years of history, GOL —Latin America's original low-cost carrier— has transformed the Latin American airline market. With our financial restructuring process now complete, we are ready to continue driving forward on our purpose of 'Being First for All," said Celso Ferrer, Chief Executive Officer. "Today, we are significantly stronger. We have rationalized our fleet, optimized our costs, redesigned our network, enhanced our operational focus, and driven management efficiencies which —supported by solid customer preference, robust demand, and a five-year plan that will bring more investments in customer experience as well as new routes— will allow us to continue to drive success. We look forward to capitalizing on the opportunities we see ahead for GOL." "Thanks to the hard work of hundreds of people, we have achieved what we set out to accomplish when we first entered this process last year," Mr. Ferrer continued. "I thank our employees, customers, lessors and financial stakeholders —especially Abra, our largest shareholder— for their support throughout this process, which has been instrumental in helping us succeed." As GOL enters its next phase, the Company is well-positioned to continue expanding its position as a leading airline serving Latin America, built on its: Strengthened financial position: Having secured US$ 1.9 billion in exit financing during the court-supervised process and repaying its DIP maturity in full, GOL is now moving forward with a strong liquidity position of approximately US$ 900M, significantly reduced leverage of 5.4x, and projected net leverage below 3x by year-end 2027. With a meaningfully strengthened balance sheet, GOL is well-positioned to invest in continued enhancements to the customer experience and further network expansion. Leading loyalty program: Smiles, GOL's loyalty platform, celebrated 30 years of a solid journey in 2024. The business unit reached 24 million customers and achieved the highest revenue in its history, totaling 5.3 billion reais. Strong market position and best-in-class On-Time Performance: In 2024, GOL was the most on-time airline in Brazil and served 30 million passengers across 65 domestic destinations and 16 international destinations. Growing network supported by strong global partnerships: GOL is well-positioned to deploy its rebuilt capacity both domestically and internationally by leveraging its significant presence in key Brazilian hubs. In particular, its strategic global partnerships allow for adding new service profitably to new or underserved domestic and international routes. Abra support: The renewed commitment of Abra Group, one of the leading airline groups in Latin America -with investments in Avianca, GOL, and Wamos- provides significant know-how, financial support, and operational and financial synergies. Cooperation with other Abra airlines will allow GOL to provide customers with enhanced connectivity, new and innovative product offerings, and increased frequent flyer program opportunities and benefits. Logistics Operation: GOLLOG – GOL's logistics unit and market share leader with a 36% share – surpassed, for the first time in its history, R$ 1 billion in annual revenue, achieving a 32% growth compared to 2023. Overhauled, all-Boeing 737 fleet: In 2024, GOL overhauled over 50 engines and remains on track to have all aircraft in the air by the first quarter of 2026. The Company also continues to grow its capacity, with delivery of five Boeing 737 MAX expected in 2025. Pursuant to the powers delegated to the Company's Board of Directors by the Extraordinary General Meeting of Shareholders held on May 30, 2025 ("General Meeting"), in connection with the Company's capital increase through the capitalization of credits approved by the General Meeting ("Capitalization"), the Board of Directors, at a meeting held on the date hereof, verified the amount of such credits in local currency and determined that the Capitalization amounts to BRL 12,029,337,733.91, comprising the issuance by the Company of 8,193,921,300,487 common shares and 968,821,806,468 preferred shares. In accordance with the Law No. 6,404, of December 15, 1976 ("Brazilian Corporations Law"), the Company's shareholders are entitled to preemptive rights in the subscription of shares under the Capitalization, pursuant to Article 171, paragraph 2, of Brazilian Corporations Law ("Preemptive Rights"). Further information on the Capitalization, including the terms, procedures and conditions for the exercise of Preemptive Rights by the Company's shareholders, is disclosed and available in the notice to shareholders disclosed by the Company on the date hereof, in compliance with applicable laws and regulations. As a result of the Capitalization, Abra Group Limited controls the Company and now holds, directly or indirectly, approximately 80% of GOL's common and preferred stock (subject to variation that may result from the exercise of Preemptive Rights by other shareholders, if applicable). Due to the implementation of the Preemptive Rights, under the terms and conditions of the Capitalization, as of June 12, 2025, the Company's shares will, in addition to being traded "ex-Preemptive Rights", also be traded on the Brazilian Stock Exchange ("B3") under a new quotation factor (BRL per 1,000 shares), a new standard trading lot (1,000 shares), new tickers, and new ISIN codes, as detailed below: GOLL53 – Common Shares | ISIN: BRGOLLA01OR8 GOLL54 – Preferred Shares | ISIN: BRGOLLA01PR5 The current tickers GOLL3 and GOLL4 will be automatically converted into GOLL53 and GOLL54, respectively, both adopting a quotation factor and standard trading lot of 1,000 shares. The trading with the Preemptive Rights on B3, which will begin on June 12, 2025, will also follow a standard trading lot of 1,000 rights, with the quotation factor being BRL per lot of 1,000 rights. The Company's subscription warrants, which trade under on B3 the ticker GOLL13, will be automatically converted into GOLL80 (ISIN BRGOLLN04PR2) starting June 12, 2025. Such warrants will then be traded in lots of 1,000, with a quotation factor of R$ per lot of 1,000 warrants. The terms and conditions for exercising the subscription warrants remain applicable as established in the Board of Directors' meeting that approved the respective issuance. In addition, the Board of Directors approved, on the date hereof, the dissolution of the Company's Special Independent Committee, deeming that its duties have been fully fulfilled. The Company also notes that, on the date hereof, Mr. Ricardo Constantino and Mr. Paul Stewart Aronzon resigned from their position in the Company's Board of Directors, and Mr. Manuel José Irarrázaval Aldunate was appointed as member of the Board of Directors. Due to the resignation of Mr. Ricardo Constantino, Mr. Antonio Kandir was appointed as the new Vice President of the Board of Directors. Advisors In the context of its restructuring efforts, GOL worked with Milbank LLP as legal advisor, Seabury Securities, LLC as investment banker, lead placement agent for the US$ 1.9 billion exit notes, and financial advisor, BNP Paribas Securities Corp. as bookrunner (B&D) and placement agent for the exit notes, and AlixPartners, LLP as financial advisor. In addition, Lefosse Advogados acted as GOL's Brazilian legal advisor. Abra worked with Wachtell, Lipton, Rosen & Katz as legal counsel and Rothschild & Co as financial advisor in connection with the restructuring. In addition, Pinheiro Guimarães served as Abra's Brazilian counsel and Slaughter & May as Abra's English counsel. Special note regarding forward-looking statements This material fact contains certain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. The words "will," "maintain", "plans" and "intends" and similar expressions, as they relate to GOL, are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Undue reliance should not be placed on such statements. Forward-looking statements speak only for the date they are made. About GOL Linhas Aéreas Inteligentes S.A. GOL is one of Brazil's leading airlines and is part of the Abra Group. Since it was founded in 2001, the company has had the lowest unit cost in Latin America, democratizing air transport with the aim of "Being the First for All". GOL has alliances with American Airlines and Air France-KLM and offers customers more than 60 codeshare and interline agreements, making connections to any place served by these partnerships more convenient and easier. GOL also has the Smiles loyalty program and GOLLOG for cargo transportation, which serves various regions in Brazil and abroad. The company has 14,5 thousand highly qualified professionals focused on safety, GOL's number one value, and operates a standardized fleet of 139 Boeing 737 aircraft. The Company's shares are traded on B3 (GOLL4). For further information, visit About Abra Group Abra, a UK-based company, is one of the most competitive air transport groups in Latin America. It brings together the iconic Gol and Avianca brands under a single leadership and a strategic investment in Wamos Air, anchoring an airline network that has one of the lowest unit costs in its respective markets, leading loyalty programs across the region (LifeMiles and Smiles) and other synergistic businesses. In addition, Abra has a convertible debt representing a minority stake investment in Sky Airline Chile. The Group consolidates a team of around 30,000 highly qualified aviation professionals and a fleet of more than 300 aircraft, with scheduled flights serving 25 countries and more than 150 destinations. Gol is one of Brazil's leading airlines, operating a standardized fleet of 138 Boeing 737 aircraft and employing 13,900 highly qualified professionals. Avianca, the second oldest airline in the world, operates more than 140 A320 and B787 passenger aircraft, as well as 7 cargo aircraft, and has more than 14,000 employees. Finally, Wamos Air is Europe's leader in wide-body ACMI operations, operating 13 A330 passenger aircraft. For more information, visit GOL Media Contacts U.S. Joele Frank, Wilkinson Brimmer Katcher: Leigh Parrish / Jed Repko lparrish@ / jrepko@ South America In Press Porter Novelli gol@ GOL Investor Relations ir@ View original content to download multimedia: SOURCE GOL Linhas Aéreas Inteligentes S.A. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Trade Arabia
4 days ago
- Business
- Trade Arabia
GOL, TAP Adopt IATA FuelIS to deliver fuel savings
GOL and TAP Air Portugal have become the first airlines to use IATA FuelIS — an advanced analytics solution designed to help airlines optimise fuel consumption. International Air Transport Association's (IATA) net-zero carbon emissions roadmap highlights that technology and operational efficiency improvements — which directly lower fuel consumption — are expected to contribute to about 10% of the emissions reduction in 2050. "Fuel management is key for airlines. Depending on the prevailing price of jet fuel, it generally accounts for 25-30% of the cost base. On top of that, as airlines decarbonise, tracking and managing carbon costs—which are directly related to fuel consumption—will be a growing priority. Understanding how an airline is performing compared with industry peers using FuelIS can pinpoint potential efficiencies that reduce costs and improve environmental performance. The great support from 220 airlines contributing operational data on fuel consumption combined with continuously improving analytical capabilities makes FuelIS a very compelling tool,' said Nick Careen, IATA Senior Vice President Operations, Safety and Security. Data Accuracy and Reliability IATA FuelIS helps airlines benchmark the fuel efficiency of their aircraft or engines against industry averages, gaining valuable insights into specific markets, regions, countries, and fleet types based on real operational data. IATA FuelIS uses data from the IATA Global Aviation Data Management (GADM) platform. This data is sourced from the Flight Data eXchange (FDX) program which now comprises fuel data from more than 220 airlines worldwide, covering more than 8 million flights a year. FuelIS integrates seamlessly with IATA's Fuel Efficiency Gap Analysis (FEGA), with the data from FuelIS supporting the development and tracking of fuel strategies. Since 2005, IATA has partnered with airlines worldwide, helping the industry identify potential annual reductions of 4.76 million tonnes in fuel consumption, equating to $3.8 billion in savings annually. 'Fuel is a major cost driver for TAP Air Portugal. Managing consumption is an important priority for its cost implications and its contribution to decarbonization. Every kilogram of fuel saved counts. The insights FuelIS provides help us measure the impact of our fleet modernization and our long-term transition to SAF. It also supports a fuel strategy that is more responsive to market and operational changes,' said TAP Air Portugal CEO Luís Rodrigues.
Yahoo
20-05-2025
- Business
- Yahoo
GOL Receives U.S. Court Approval for Plan of Reorganization
Company to Emerge from United States Chapter 11 Process with Strengthened Competitive Position, Balance Sheet and Operational Performance New US$ 1.9 Billion Exit Financing Facility Provides Ample Cash to Support Strategic Execution Following Emergence Expects to Complete Chapter 11 Process in June 2025 SíO PAULO, May 20, 2025 /PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4) ("Company" or "GOL"), one of the leading airlines in Brazil, today announced that the U.S. Bankruptcy Court has decided to confirm GOL's Chapter 11 Plan of Reorganization (the "Plan"). With confirmation secured, GOL remains on track to emerge from its restructuring process in early June 2025. Throughout the course of its United States Chapter 11 process, GOL has made significant strides forward in improving its competitive position, financial foundation and operational performance. Key milestones of the process included: Securing US$ 1 billion in debtor-in-possession ("DIP") financing, which bolstered liquidity and allowed GOL to re-invest in its aircraft fleet; Negotiating concession packages totaling US$ 1.1 billion from lessors covering all aircraft in GOL's fleet, including financial support to clear its maintenance backlog while also providing permanent savings on rent and end of lease obligations; Obtaining support from Brazilian banks, including restructuring approximately US$ 150 million of local debentures and access to approximately US$ 340 million of receivables factoring, a critical working capital tool for Brazilian companies; Identifying and beginning implementation of a US$ 181 million annual profit improvement program to solidify GOL as one of the most cost competitive airlines in South America; Negotiating a Plan Support Agreement with Abra Group Limited ("Abra") and the Unsecured Creditors Committee to deleverage GOL through a reduction of up to approximately US$ 1.6 billion of prepetition funded debt and up to US$ 0.8 billion of other obligations; Finalizing an agreement with the Brazilian governmental authorities to reduce unpaid government taxes, contingencies, and other liabilities by approximately US$ 750 million and to generate approximately US$ 184 million of liquidity through 2029; Reaching an agreement with The Boeing Company on modifications of the purchase contracts to provide US$ 262 million of concessions and incremental liquidity through 2029 and over US$ 0.7 billion of total relief; and Securing US$ 1.9 billion in exit financing which provides ample liquidity to repay the Company's DIP maturity in full upon emergence, while also providing additional liquidity to support GOL's execution of its business plan. The Company is now positioned to emerge from the process with: Meaningfully strengthened balance sheet: Upon emergence, GOL will move forward with a strong liquidity position of approximately US$ 900M and significantly reduced leverage of 5.4x at exit, and projected net leverage of 2.9x by year-end 2027. Overhauled all-Boeing 737 fleet on track to return to pre-pandemic domestic capacity: In 2024, GOL overhauled over 50 engines and remains on track to have all aircraft in the air by the first quarter of 2026. The Company also continues to strengthen its fleet, with expected delivery of five additional Boeing 737 MAX in 2025. Positive business momentum built on recent outperformance: As a result of the fleet overhaul, in the fourth quarter of 2024 and first quarter of 2025, GOL's operational and financial performance has exceeded the expectations previously outlined in its 5-Year Plan, with strong and growing demand translating to 17.4% year-over-year recurring EBITDA growth and 19.4% year-over-year net revenue growth in the first quarter. GOL is entering its next phase with a strong market position and best-in-class customer offering as it continues to rebuild its network in key markets, serving 30 million passengers across 65 domestic destinations and 16 international destinations in 2024. Driven by its mission of being "First for All," GOL offers passengers the largest number of seats, more space between seats and the greatest onboard experience including internet, movies and live TV. Through its Smiles loyalty program, which is the largest loyalty program in Brazil and the second largest program in Latin America, GOL offers customers access to over 50 partner airlines, three co-branded credit card options and over 550,000 product options to redeem on non-travel partners. As the Company continues to execute its proven network expansion strategy, GOL is well-positioned to deploy its rebuilt capacity both domestically and internationally by leveraging its significant presence in key Brazilian hubs. In particular, its strategic global partnerships allow for adding new service profitably to new or underserved domestic and international routes. Next StepsHaving secured confirmation of its Plan, GOL is now focused on completing the final steps necessary to complete its exit from the Chapter 11 process, including its shareholders' meeting to approve the capital increase contemplated under the Plan, which will take place on May 30, 2025. Following implementation of the Plan, Abra will remain GOL's largest indirect shareholder. GOL reiterates that, under the terms of the Plan, it will significantly reduce its indebtedness by converting into equity or extinguishing up to approximately US$ 1.6 billion of its pre-Chapter 11 funded debt and up to approximately US$ 850 million of other obligations. As such, considering that the conversion will be carried out based on the economic value of GOL's shares prior to the conversion, in accordance with applicable law, a substantial dilution of GOL's currently outstanding shares is expected (subject to shareholders' preemptive rights as provided under Brazilian law). AdvisorsIn the context of its restructuring efforts, GOL is working with Milbank LLP as legal advisor, Seabury Securities, LLC as investment banker, lead placement agent for the US$ 1.9 billion exit notes, financial advisor and sole restructuring advisor, BNP Paribas Securities Corp. as bookrunner (B&D) and placement agent for the exit notes, and AlixPartners, LLP as financial advisor. In addition, Lefosse Advogados acts as GOL's Brazilian legal advisor. Special note regarding forward-looking statementsThis material fact contains certain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. The words "will," "maintain", "plans" and "intends" and similar expressions, as they relate to GOL, are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Undue reliance should not be placed on such statements. Forward-looking statements speak only for the date they are made. About GOL Linhas Aéreas Inteligentes is one of Brazil's leading airlines and is part of the Abra Group. Since it was founded in 2001, the company has had the lowest unit cost in Latin America, democratizing air transport with the aim of "Being the First for All". GOL has alliances with American Airlines and Air France-KLM and offers customers more than 60 codeshare and interline agreements, making connections to any place served by these partnerships more convenient and easier. GOL also has the Smiles loyalty program and GOLLOG for cargo transportation, which serves various regions in Brazil and abroad. The company has 14,5 thousand highly qualified professionals focused on safety, GOL's number one value, and operates a standardized fleet of 139 Boeing 737 aircraft. The Company's shares are traded on B3 (GOLL4). For further information, visit GOL Media Contacts U.S. Joele Frank, Wilkinson Brimmer Katcher: Leigh Parrish / Jed Repko lparrish@ / jrepko@ South America In Press Porter Novelli gol@ GOL Investor Relations ir@ View original content to download multimedia: SOURCE GOL Linhas Aéreas Inteligentes S.A. Sign in to access your portfolio
Malaysian Reserve
20-05-2025
- Business
- Malaysian Reserve
GOL Receives U.S. Court Approval for Plan of Reorganization
Company to Emerge from United States Chapter 11 Process with Strengthened Competitive Position, Balance Sheet and Operational Performance New US$ 1.9 Billion Exit Financing Facility Provides Ample Cash to Support Strategic Execution Following Emergence Expects to Complete Chapter 11 Process in June 2025 SíO PAULO, May 20, 2025 /PRNewswire/ — GOL Linhas Aéreas Inteligentes S.A. (B3: GOLL4) ('Company' or 'GOL'), one of the leading airlines in Brazil, today announced that the U.S. Bankruptcy Court has decided to confirm GOL's Chapter 11 Plan of Reorganization (the 'Plan'). With confirmation secured, GOL remains on track to emerge from its restructuring process in early June 2025. Throughout the course of its United States Chapter 11 process, GOL has made significant strides forward in improving its competitive position, financial foundation and operational performance. Key milestones of the process included: Securing US$ 1 billion in debtor-in-possession ('DIP') financing, which bolstered liquidity and allowed GOL to re-invest in its aircraft fleet; Negotiating concession packages totaling US$ 1.1 billion from lessors covering all aircraft in GOL's fleet, including financial support to clear its maintenance backlog while also providing permanent savings on rent and end of lease obligations; Obtaining support from Brazilian banks, including restructuring approximately US$ 150 million of local debentures and access to approximately US$ 340 million of receivables factoring, a critical working capital tool for Brazilian companies; Identifying and beginning implementation of a US$ 181 million annual profit improvement program to solidify GOL as one of the most cost competitive airlines in South America; Negotiating a Plan Support Agreement with Abra Group Limited ('Abra') and the Unsecured Creditors Committee to deleverage GOL through a reduction of up to approximately US$ 1.6 billion of prepetition funded debt and up to US$ 0.8 billion of other obligations; Finalizing an agreement with the Brazilian governmental authorities to reduce unpaid government taxes, contingencies, and other liabilities by approximately US$ 750 million and to generate approximately US$ 184 million of liquidity through 2029; Reaching an agreement with The Boeing Company on modifications of the purchase contracts to provide US$ 262 million of concessions and incremental liquidity through 2029 and over US$ 0.7 billion of total relief; and Securing US$ 1.9 billion in exit financing which provides ample liquidity to repay the Company's DIP maturity in full upon emergence, while also providing additional liquidity to support GOL's execution of its business plan. The Company is now positioned to emerge from the process with: Meaningfully strengthened balance sheet: Upon emergence, GOL will move forward with a strong liquidity position of approximately US$ 900M and significantly reduced leverage of 5.4x at exit, and projected net leverage of 2.9x by year-end 2027. Overhauled all-Boeing 737 fleet on track to return to pre-pandemic domestic capacity: In 2024, GOL overhauled over 50 engines and remains on track to have all aircraft in the air by the first quarter of 2026. The Company also continues to strengthen its fleet, with expected delivery of five additional Boeing 737 MAX in 2025. Positive business momentum built on recent outperformance: As a result of the fleet overhaul, in the fourth quarter of 2024 and first quarter of 2025, GOL's operational and financial performance has exceeded the expectations previously outlined in its 5-Year Plan, with strong and growing demand translating to 17.4% year-over-year recurring EBITDA growth and 19.4% year-over-year net revenue growth in the first quarter. GOL is entering its next phase with a strong market position and best-in-class customer offering as it continues to rebuild its network in key markets, serving 30 million passengers across 65 domestic destinations and 16 international destinations in 2024. Driven by its mission of being 'First for All,' GOL offers passengers the largest number of seats, more space between seats and the greatest onboard experience including internet, movies and live TV. Through its Smiles loyalty program, which is the largest loyalty program in Brazil and the second largest program in Latin America, GOL offers customers access to over 50 partner airlines, three co-branded credit card options and over 550,000 product options to redeem on non-travel partners. As the Company continues to execute its proven network expansion strategy, GOL is well-positioned to deploy its rebuilt capacity both domestically and internationally by leveraging its significant presence in key Brazilian hubs. In particular, its strategic global partnerships allow for adding new service profitably to new or underserved domestic and international routes. Next StepsHaving secured confirmation of its Plan, GOL is now focused on completing the final steps necessary to complete its exit from the Chapter 11 process, including its shareholders' meeting to approve the capital increase contemplated under the Plan, which will take place on May 30, 2025. Following implementation of the Plan, Abra will remain GOL's largest indirect shareholder. GOL reiterates that, under the terms of the Plan, it will significantly reduce its indebtedness by converting into equity or extinguishing up to approximately US$ 1.6 billion of its pre-Chapter 11 funded debt and up to approximately US$ 850 million of other obligations. As such, considering that the conversion will be carried out based on the economic value of GOL's shares prior to the conversion, in accordance with applicable law, a substantial dilution of GOL's currently outstanding shares is expected (subject to shareholders' preemptive rights as provided under Brazilian law). AdvisorsIn the context of its restructuring efforts, GOL is working with Milbank LLP as legal advisor, Seabury Securities, LLC as investment banker, lead placement agent for the US$ 1.9 billion exit notes, financial advisor and sole restructuring advisor, BNP Paribas Securities Corp. as bookrunner (B&D) and placement agent for the exit notes, and AlixPartners, LLP as financial advisor. In addition, Lefosse Advogados acts as GOL's Brazilian legal advisor. Special note regarding forward-looking statementsThis material fact contains certain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. The words 'will,' 'maintain', 'plans' and 'intends' and similar expressions, as they relate to GOL, are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Undue reliance should not be placed on such statements. Forward-looking statements speak only for the date they are made. About GOL Linhas Aéreas Inteligentes is one of Brazil's leading airlines and is part of the Abra Group. Since it was founded in 2001, the company has had the lowest unit cost in Latin America, democratizing air transport with the aim of 'Being the First for All'. GOL has alliances with American Airlines and Air France-KLM and offers customers more than 60 codeshare and interline agreements, making connections to any place served by these partnerships more convenient and easier. GOL also has the Smiles loyalty program and GOLLOG for cargo transportation, which serves various regions in Brazil and abroad. The company has 14,5 thousand highly qualified professionals focused on safety, GOL's number one value, and operates a standardized fleet of 139 Boeing 737 aircraft. The Company's shares are traded on B3 (GOLL4). For further information, visit GOL Media Contacts U.S. Joele Frank, Wilkinson Brimmer Katcher: Leigh Parrish / Jed Repko lparrish@ / jrepko@ South America In Press Porter Novelli gol@ GOL Investor Relations ir@
