Monday, July 13, 2015

Delta to buy $56 million worth of GOL shares

Delta Air Lines will deepen its ties to GOL, agreeing to invest up to $56 million in preferred shares newly issued by the Brazilian airline.

Delta, which spent $100 million in 2011 to gain a stake in GOL and a seat on the carrier’s board of directors, has also agreed to guarantee a $300 million term loan GOL plans to enter into with third party lenders, GOL said, adding, “In connection with these transactions, GOL and Delta will extend their commercial cooperation arrangements.”

The two airlines codeshare and, according to GOL, are planning to expand cooperation in aircraft maintenance.

Fundo de Investimento em Participações Volluto, GOL’s controlling shareholder, will invest up to $90 million in the newly issued preferred shares.

São Paulo-based GOL incurred a 2014 net loss of more than $400 million.

(Aaron Karp - ATWOnline News) 

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