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Brazilian airline Gol said that it is filing for Chapter 11 bankruptcy protection in the US. After reporting BRL 20bn ($4.1bn) in gross debt, it said that it would receive $950mn in financing from bondholders in its holding Abra Group. The woes for Gol continue since the impact of the pandemic, with the CEO saying that the bankruptcy filing was a step toward ensuring the company has the correct capital structure to face the aviation industry’s challenges. Besides cashflow pressures due to high leasing and interest expenses, the company has also faced capacity issues with delayed aircraft deliveries from Boeing.
Gol’s dollar bonds were trading stable at distressed levels of 17 cents on the dollar.
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