SAO PAULO (Reuters) – Brazilian airline Gol expects its exit of Chapter 11 chapter proceedings to contain a $1.5 billion capital injection via the issuance of latest shares and the refinancing of $2 billion in debt, it stated in a securities submitting on Monday.
Gol, one in every of Brazil’s largest carriers, filed for chapter safety in the US earlier this yr after combating heavy debt and delayed deliveries from planemaker Boeing (NYSE:).
The estimates for it to emerge from the restructuring course of are a part of a broader five-year strategic plan unveiled by the agency, which incorporates growing its fleet and boosting working margins within the coming years.
Gol stated it will maintain a “competitive process” beginning in June to guage proposals to finance its chapter exit, including the method ought to final a minimum of till the tip of the third quarter.
The service will even examine “any viable, competitive alternative transactions, including opportunities presented by potential sources of equity and debt capital” as a part of the transfer, it stated.
“While Gol anticipates a successful exit financing process, there can be no assurance that the process will result in any transactions,” the corporate added.
Earlier this month, Gol and Brazilian rival Azul introduced a codeshare settlement, connecting their networks and frequent flyer packages in a transfer that reignited hypothesis a couple of potential merger.