Dechert Advises on US$1.6 Billion Financing of Brazil’s Largest Domestic Airline

Dechert advised the ad hoc group of secured and unsecured bondholders of Brazil’s largest domestic airline, GOL Linhas Aéreas Inteligentes S.A. (“GOL”), in connection with its recently concluded US$1.6 billion combined liability management and new capital financing transaction. 

The transaction involved the investment of new money and the exchange of existing GOL bonds for the issuance of new fixed income and convertible secured debt guaranteed by Abra Group Limited (“Abra”), a holding company established to acquire GOL and Avianca Group International Limited (“Avianca”). The transaction makes possible the consummation of the previously announced combination of GOL and Avianca within the Abra group. The complex, cross-border financing represents one of the largest completed liability management and comprehensive refinancing transactions in both the airline industry and the emerging markets.

The financing also marks Dechert’s third major aviation industry matter in recent years, bolstering the firm's strong track record of advising on financial restructurings in emerging markets. Members of the Dechert team were recently involved in the award-winning Chapter 11 cases of LATAM Airlines and Avianca.

The Dechert team advising the ad hoc group showcased Dechert’s broad array of services and was led by co-chair of Dechert’s financial restructuring group, Allan Brilliant, and global finance partner, Jeff Katz. The team included partners Ani Ravi (global finance), Giles Belsey (global finance), Anna Tomczyk (corporate), Jean-Louis Frognet (financial services) and Kevin Zaragoza (tax), with associates Eric Hilmo (financial restructuring), Dienna Corrado (global finance), Ashtyn Hemendinger-Oswald (global finance), D'Juan Neal (global finance), James Zhu (global finance), Insung Kim (tax), Iulia Gay (financial services), Beyond Bi (corporate), Oliver Maher (global finance) and Helen Yan (financial restructuring).

About Dechert’s Financial Restructuring Group

Dechert has a market-leading financial restructuring team comprised of more than 50 lawyers across the United States, Europe and Asia with experience representing clients across the globe. Our lawyers are known for representation on ground-breaking matters, innovative deal structuring, creative solutions, seamless cross-border advice and national and international court victories. We represent a wide range of creditor and debtor clients on the full spectrum of complex cross-border restructuring, bankruptcy and insolvency matters. To read more about Dechert’s financial restructuring practice, click here.

About Dechert

Dechert is a leading global law firm with 21 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.