Gol Airlines Considers Bankruptcy Protection Amid Financial Struggles

Summary

  • Gol airline has not yet disclosed the approach for its restructuring plan.
  • Folha de Sao Paulo, a newspaper, reported that Gol may consider filing for bankruptcy protection in the US.
  • Gol’s shares dropped by nearly 9% this week after the release of the report.
  • The airline reiterated its dedication to increasing funds to boost its cash position.
  • Gol has been dealing with a high debt burden and previously engaged Seabury Capital to help restructure its capital.

The airline company, Gol, has announced that it has not yet detailed a strategy for its forthcoming restructuring. The specifics of the plan are being awaited.

Bankruptcy Protection

The notion of bankruptcy within the next month in the US was put forth by newspaper Folha de Sao Paulo on Sunday. Following the announcement, the value of Gol’s shares decreased, recording approximately 9% reduction during this week.

Strengthening Cash Position

Through its statement, Gol has emphasized its commitment towards raising adequate funds, thereby enhancing its cash position. The airline is facing hardships due to high debt.

Engagement with Seabury Capital

In the previous month, Gol had engaged Seabury Capital for guidance on capital structure revisions addressing liability management and financial transactions. Other measures intended to improve liquidity were also be considered.

The airline’s restructuring decision can influence forex or trading, as it could impact the value of Gol and related assets.

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