#Brazil #São Paulo #Chapter 11 #GOL Linhas Aéreas #Whitebox Advisors

GOL Linhas Aéreas Reaches Settlement with 2024 Notes Holders

GOL Linhas Aéreas Inteligentes S.A., recognized as one of Brazil's prominent airlines, has announced a significant settlement with Whitebox Advisors LLC. This deal directly involves the management of funds and accounts that hold 3.75% Exchangeable Senior Notes due in 2024. The settlement comes as a resolution to conflicts regarding the provisions for holders of these securities under the Company's ongoing Chapter 11 reorganization plan.

On May 8, 2025, GOL confirmed that reaching this agreement with Whitebox was essential. The endorsement from this key stakeholder is critical as it paves the way for the finalization of the Plan confirmation hearing. In essence, the agreement provides a clear trajectory for GOL towards exiting its Chapter 11 proceedings, a process that is expected to complete by June 2025.

Details of the Agreement

The terms set forth in the settlement state that Whitebox, on behalf of the holders representing the necessary amount of 2024 Senior Exchangeable Notes, will endorse the existing Plan Support Agreement. This agreement was previously established among GOL, Abra Group Limited, and the Official Committee of Unsecured Creditors. Additionally, certain members of the ad hoc group consisting of holders of 8.00% Senior Secured Notes due in 2026 are also part of this supportive coalition.

The restructuring plan will undergo modifications which will be detailed in a revised document that GOL intends to file with the U.S. Bankruptcy Court. Notably, these changes will affect the allocations of distributions to general unsecured claimholders and provide a more balanced approach to the debtor allocations.

GOL's plan incorporates significant financial restructuring, aiming to dramatically decrease its debt levels. The airline intends to convert or eliminate up to around $1.7 billion of its pre-Chapter 11 funded debt, alongside about $850 million of other financial obligations. The conversion process is determined by the anticipated economic value of GOL's shares prior to said conversion, potentially leading to substantial dilution of existing shares, adhering to shareholder rights as outlined by Brazilian law.

Future Outlook

With this agreement in place, GOL is optimistic about addressing its financial stability moving forward. The anticipated conclusion of the Chapter 11 process represents a crucial step for the airline in regaining its footing within the competitive aviation market. Through the stabilization of its financial structure, GOL aims to maintain its position as a leader in the Brazilian airline industry while improving overall service offerings and customer satisfaction.

About GOL Linhas Aéreas Inteligentes S.A.

GOL was founded in 2001 and has since been recognized for maintaining the lowest unit costs in Latin America, facilitating accessible air travel. The airline has developed strategic partnerships with major global airlines, including American Airlines and Air France-KLM, enhancing connections for its passengers through a robust codeshare and interline agreement framework. GOL is also known for its loyalty program, Smiles, and its logistics service, GOLLOG, catering to freight transport needs across Brazil and international markets. The airline employs approximately 13,900 dedicated professionals, emphasizing safety as its paramount priority, supported by a standardized fleet comprising 138 Boeing 737 aircraft.

For more information on GOL Linhas Aéreas, visit www.voegol.com.br/ir.