SAO PAULO (Reuters) – Brazilian airline Gol expects its exit from Chapter 11 bankruptcy to involve a capital injection of $1.5 billion through the issuance of new shares and the refinancing of $2 billion in debt. he said Monday in a regulatory filing.
Gol, one of Brazil's largest airlines, filed for bankruptcy in the United States earlier this year after struggling with heavy debt and delivery delays from plane maker Boeing (NYSE:).
The estimates for it to emerge from the restructuring process are part of a broader five-year strategic plan presented by the firm, which includes increasing its fleet and increasing operating margins in the coming years.
Gol said it would carry out a “competitive process” starting in June to evaluate proposals to finance its exit from bankruptcy, adding that the process should last at least until the end of the third quarter.
The airline will also study “any viable and competitive alternative transactions, including opportunities presented by potential sources of equity and debt capital” as part of the move, it said.
“While Gol anticipates a successful exit financing process, there can be no assurance that the process will result in any transaction,” the company added.
Earlier this month, Gol and Brazilian rival Azul announced a codeshare agreement, connecting their networks and frequent flyer programs in a move that reignited speculation about a possible merger.
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