Brazilian discount carrier Gol has filed for Chapter 11 bankruptcy restructuring.
The airline will continue full operations during the restructuring process and says that customer service will not be impacted.
"Gol has undertaken significant efforts to provide the best travel experience for our customers, while improving our profitability and financial position," CEO Celso Ferrer said. "We have made outstanding progress to date and believe that this process will allow us to fully address the challenges caused by the pandemic while we maintain our high standard of service to our customers."
Gol currently flies four routes to the U.S., all in Florida. The carrier also codeshares with American Airlines on dozens of South American routes from Rio de Janeiro and Sao Paolo. American owns 5.2% of Gol.
Gol had net debt of approximately $3.76 billion at the end of last year's third quarter.
The carrier said that is has entered the Chapter 11 process with a financing commitment of $950 million from bondholders of Abra Group, which owns Gol. That financing, which is subject to court approval, will provide Gol with enough liquidity to support normal operations as it restructures, the company said.
Gol has a fleet of 139 aircraft, according to Planespotters.net.