B3 states that the withdrawal is due to the request for judicial recovery; shares of the airline fell 33.61% this Monday

A B3 (São Paulo Stock Exchange) announced this Monday (January 29, 2024) that it will delist the GOL share (GOLL4) Brazilian financial market indices. The Stock Exchange states that the decision is due to the airline’s request for judicial recovery in the United States and the “too many repercussions”.

The measure comes into effect on Tuesday (January 30) and includes the Ibovespa, the main one in the country. The company’s shares continue to be traded on the Brazilian Stock Exchange, but under the title “other conditions”. Here is the full text (PDF – 36 kB) of the statement.

According to B3, the GOL’s participation will be “redistributed proportionally to the other members of the portfolio with the relevant adjustment in reducers”.

The airline’s shares fell 33.61% this Monday (29 January) and were now quoted at R$ 3.93. It was the biggest low of the day on B3.

Judicial recovery

On Thursday (January 25), GOL requested entry into the chapter 11 and the request was approved the following day by the American Court. Until the date of the request, the most recent financial data referred to the 3rd quarter of 2023, when the company reported R$20 billion in debt. According to the company, half of the debts are with aircraft lessors.

  • what is the chapter 11 – is the chapter of the US Bankruptcy Law that deals with the financial restructuring of companies, a mechanism equivalent to Brazilian judicial recovery. The process allows companies to recover their financial situation, including debt renegotiation, while continuing to operate normally with US judicial oversight and approval. The mechanism has been used successfully by many international airlines, including Latam, United Airlines, Delta, Aeroméxico and Avianca Colombia.

Also this Monday (Jan 29), GOL reported having closed the year 2023 with US$3.5 billion in assets and US$8.3 billion in liabilities. As a result, net debt reached US$4.8 billion, around R$24 billion.

Source: https://www.poder360.com.br/economia/bolsa-anuncia-exclusao-da-gol-dos-indices-de-mercado/

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