Gol shares fall due to debt restructuring plan

The shares of Avianca’s partner airline in the Abra Group, the Brazilian Gol, fell 16% in five days as a reaction to the debt restructuring plan. The company disclosed that shareholders could face a potential dilution of up to 80%.

Gol communicated last Wednesday the issuance plans to achieve the Gol Equity Finance convertible debt transaction. However, both the Citigroup report on the company’s values ​​and the opinion of Itaú analysts increased the impact on the market, according to Aviacionline.

Grupo Abra plans to transfer pre-emptive rights to warrants to Gol Equity Finance with a minimum subscription of 991,951,681 warrants.

Gol clarified that the rights guaranteed to shareholders offer them the possibility of retaining their shareholding, provided that the warrants are subscribed for which the Board approved the issuance of these for the subscription of preferred shares.

However, a separate notice to shareholders reveals a high risk of dilution, which depends on the number of bonds subscribed.

as reported REPORTUR.co, with the confirmation of the creation of the Abra Group in the month of May and the start of operations from the second semester of this 2023, the airlines will focus on the “greater efficiencies and investments within a common business”. (Abra Group: Avianca and Gol ready to start in the second semester).

However, the companies communicated at the time that they will remain independent in terms of brands, talent, teams and culture. Likewise, 100% of the economic rights will pass to the Abra Group.