Brazilian Airline Gol Exits Bankruptcy After US Court Restructuring Approval

Brazilian airline Gol has received U.S. bankruptcy court approval for its Chapter 11 restructuring plan, enabling it to exit bankruptcy protection by early June 2025. The plan includes cutting about $1.6 billion of funded debt and up to $850 million in other obligations, significantly reducing the company's debt burden and improving its financial position. Gol secured $1 billion in debtor-in-possession financing and reached agreements with lessors and Brazilian financial institutions to bolster liquidity and reduce costs. The airline also implemented a $181 million annual profit improvement program aimed at enhancing its cost competitiveness in South America. Abra Group Limited remains the largest indirect shareholder, and Gol plans to continue upgrading its fleet with new Boeing 737 MAX jets. Meanwhile, fellow Brazilian carrier Azul is facing financial challenges that could affect their potential merger discussions.