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Gol’s biggest shareholder, Fundo de Investimento em Participacoes Volluto, will invest as much as $90 million. Delta also will guarantee a term loan with third-party lenders for as much as $300 million, Gol said Friday.
“The board of Gol will determine the exact amount of capital increase in Brazilian reais,” the airline said in a statement. Gol is Latin America’s biggest low-fare carrier.
Delta’s move expands ties to Gol that include a 2.9 percent holding and a seat on the board of the Sao Paulo-based airline. With debts denominated in dollars, the currency weakening and Brazil sliding into recession, Gol has been mired in annual losses since 2011. Its shares have tumbled 60 percent this year.
This article was written by Edward Dufner from Bloomberg and was legally licensed through the NewsCred publisher network.