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Brazilian airline Gol Linhas Aereas Inteligentes SA has hired Seabury Capital to restructure its balance sheet, review liabilities and renegotiate with lessors to free up cash, the company said in a filing late last week. This comes about nine months after the company reached a debt restructuring deal with Abra Group, leading to concerns among market participants about its ability to overcome financial challenges following the pandemic. The latest move to restructure triggered a two-notch downgrade from both S&P and Fitch to CCC-, with Fitch citing “increasing risks of GOL’s debt restructuring as a result of its ongoing high refinancing risks, operating cash flow pressure due to current and deferred leases payments and weak liquidity position.”
Gol’s dollar bonds have been trading weaker over the past four months – its 7% 2025s have shed ~20 points since August this year to currently trade at 41.9 cents on the dollar.
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