A US federal judge has rejected some provisions of Brazilian carrier Gol’s previously approved bankruptcy restructuring plan, a move coming six months after the airline emerged from bankruptcy court protection.
Federal district judge Denise Cote with US District Court for the Southern District of New York issued the ruling on 1 December, citing provisions in the restructuring plan related to creditors releasing claims against the airline.
The judge’s order reverses a previous approval of the restructuring plan and strickens those provisions from the plan.
The decision ”does not affect Gol’s successful emergence from Chapter 11”, the airline says, adding that it has right to appeal.
“Gol has completed its restructuring transactions under the Plan, and its operations and business are not affected by the decision of the District Court,” the airline adds.
The airline filed for bankruptcy court protection in January 2024 amid financial distress stemming from the Covid-19 pandemic.
On 21 May, Judge Martin Glenn approved the company’s reorganisation plan, which involved concessions from aircraft lessors, reworked aircraft supply agreements with Boeing, and restructured debt.
Notably, the plan specified that creditors would be considered to have released claims against the company “unless they affirmatively opted out of doing so”, court papers say.
A trustee for the US government – part of a government programme to ensure the integrity of bankruptcy cases – had appealed those provisions, saying the opt-out requirements violated state law.
Gol emerged from bankruptcy on 6 June having secured more than $2.5 billion in fresh financing.
But the appeal continued working through the court.
In finally approving the appeal on 1 December, judge Cote writes, “Creditors had no duty to respond to the opt-out opportunity, and courts do not enter default judgements when parties have no duty to respond”.
Story updated on 5 December to specify that the order rejects provisions of the restructuring plan.
