S. A. GOL Linhas Aéreas Inteligentes The Brazilian low-cost airline ( GOL), based in Rio de Janeiro, announced that it has decided to file for Chapter 11 in the United States Bankruptcy Court for the Southern District of New York. It competes primarily with LATAM Brasil, Azul, and other South American nations.
With the help of this volunteer processing, GOL and its subsidiaries can use US law to raise money, improve their financial situation, and improve future business operations while continuing with current operations.
With a fiscal responsibility of US$ 950 million in new debtor-in-possession funding from the Ad Hoc Group of Abra Bondholders and another ABRA bond holders, GOL starts the legal process in the US. In the days to come, the Company may ask for access to this money at its First Day hearing. The money, which is subject to court approval, will provide substantial cash to sustain normal procedures throughout the Chapter 11 trials when combined with money flow from ongoing operations.
With the assistance of the court-supervised process and more cash from DIP financing, GOL’s passenger and goods flights, Smiles Loyalty program, and another operations are running as usual. The Organization is still dedicated to providing customers with the best travel experience possible by providing healthy and affordable air travel services. The accrue, purchase, and forgiveness of Smiles miles, as well as ticket and voucher usage, will not be impacted by travel arrangements. Consumers will still have access to GOL’s codeshare and interline contracts.
The Chief Executive Officer, Celso Ferrer, stated that GOL has made significant efforts to improve customer vacation experiences while also boosting the business’s success and financial position.
This process will be used by GOL to restructure its immediate financial obligations and improve its long-term fiscal framework for efficient functioning. The Company expects to come out of this process with a sizable infusion of new money, including the recently secured US$ 950 million in DIP funding, which will help GOL grow into one of the major Spanish American carriers.
GOL continues to deliver powerful acting performance despite difficulties with its capital structure and a decline in aircraft accessibility. GOL outperformed other Latin American carriers in the second quarter of 2023, producing excellent operating outcomes. This was the fourth quarter in a row with persistently higher operating margins. Notably, GOL set a historical record for net operating income of R$ 4.7 billion, which represents an increase of 16.4 % over the same time last year. This expansion was mostly fueled by the Smiles and GOLLOG goods operations’ sizable contributions, which increased by 65.1 % overall in the second quarter of 2023 over the same period in 2022, for a total profit of R 412.6 million. Additionally, compared to the same time last year, GOL’s occupancy rate rose by 4.8 % to 82.7 % in December 2023. Operational indicators from GOL, such as timeliness, regularity, occupancy rates, and ship utilization, show the business’s dedication to efficiency and productivity, even in trying conditions.
GOL’s operations wo n’t be impacted by the US Court-supervised supervision process. Throughout this time, staff salaries and benefits will be paid as usual, with no interruptions to their normal responsibilities.
GOL will defend its commitments to business partners and suppliers for goods and services provided on or after the Chapter 11 declaration date, and operations may continue unhindered while being supervised by the US Court.
Users of GOL should carry out their vacation plans and fly as usual, using the necessary reservations and vouchers. Users will also receive yards while flying with GOL, and they can buy and unlock yards through Smiles. In accordance with the Company’s current policies, GOL intends to preserve its duty to consumers, including refunds for tickets, travel coupons, and payments or credits for cargo or company claims. GOL Files for Chapter 11 in the US Bankruptcy Court, according to SOURCE: eTurboNews |ETN