Low-cost Brazilian airline Gol files for bankruptcy in US

Gol Linhas Aereas Inteligentes SA filed for bankruptcy, capping the Brazilian airline’s ill-fated efforts to bounce back from the Covid-19 pandemic. The low-cost carrier filed for Chapter 11 bankruptcy protection on Thursday in New York, according to court filings. The move allows Gol to keep operating while it seeks approval of a creditor-repayment plan. The Sao Paulo-based company secured $950m of bankruptcy financing from a group of bondholders, according to a statement. Gol has grappled with a heavy debt burden and saw investors question its ability to navigate a rebound in the air travel industry across the region. After initially avoiding the fates of pandemic-scarred peers, the firm last year hired Seabury Capital to help review its debt and other financial obligations. Abra Group Ltd., a holding firm created to control the operations of Gol and Colombia’s Avianca, has held talks with creditors to discuss a debt overhaul and a plan to raise fresh cash for Gol, Bloomberg reported in January.<br/>