SAO PAULO (Reuters) – Brazilian airline Gol expects its exit from Chapter 11 bankruptcy to include a $1.5 billion capital injection through the issuance of new shares and the refinancing of $2 billion of debt, it said in a securities filing in Monday.
Gol, one of Brazil’s largest carriers, filed for bankruptcy protection in the United States earlier this year after struggling with heavy debt and delivery delays from planemaker Boeing (NYSE:).
Its expected results from the restructuring process are part of a broader five-year strategic plan unveiled by the firm, which includes expanding its fleet and improving operating margins in the coming years.
Gaul said it would conduct a “competitive process” to evaluate proposals to finance its exit from bankruptcy starting in June, adding that the process should last at least until the end of the third quarter.
As part of the move, the carrier will also explore “any viable, competitive alternative transactions, including opportunities presented by potential sources of equity and debt capital,” it said.
“While Gol expects a successful exit financing process, there is no guarantee that this process will result in any transactions,” the company added.
Earlier this month, Gol and Brazilian rival Azul announced a codeshare agreement combining their networks and frequent flyer programs, reigniting speculation about a potential merger.