Gol Linhas, subsidiaries initiated voluntary U.S. bankruptcy reorganization

In a regulatory filing, GOL Linhas Aereas Inteligentes S.A. disclosed that the company announced that GOL and its subsidiaries have initiated voluntary reorganization proceedings under Chapter 11 of the United States Bankruptcy Code, or “Chapter 11,” in the United States Bankruptcy Court for the Southern District of New York and issued a press release in connection therewith. “GOL and its filing subsidiaries and affiliates intend to continue to operate their businesses as ‘debtors in possession’ under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code during the pendency of the Chapter 11 process,” the company stated. “GOL enters the U.S. legal process with a financing commitment for US$950 million in new debtor-in-possession 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. With the support of the court-supervised process and the additional liquidity from the DIP financing, GOL’s passenger flights, its GOLLOG cargo flights, Smiles Loyalty program and other company operations are continuing in the normal course. The Company will continue providing safe and reliable air travel service at a low cost, providing the best travel experience to its customers. Customers will be able to continue to arrange travel and fly in the same manner they always have, including the use of tickets and vouchers, and the accrual, purchase and use of miles earned through Smiles. GOL’s codeshare and interline agreements will also continue to be available to customers,” the company added.