Brazilian airline GOL has filed for Chapter 11 bankruptcy protection in the US.
The low-cost carrier filed for bankruptcy in New York on Thursday (25 January) after reporting some 20 billion reais (approximately $4 billion) in gross debt in the third quarter of 2023.
The Sao Paulo-based carrier said it has secured $950 million of bankruptcy financing from bondholders in its holding Abra Group, according to a Reuters report.
GOL chief executive Celso Ferrer said the decision is a step toward ensuring the company has the correct capital structure to face the challenges of the aviation industry and address the economic impacts caused by the pandemic, according to Reuters.
The carrier also recently extended its commercial partnership with Air France-KLM for a further 10 years. The agreement, first introduced in 2014 following a $100 million investment by the European airline group, provides reciprocal exclusivity on traffic flows between Europe and Brazil.