SAO PAULO (Reuters) – Brazilian airline Gol said on Tuesday it is discussing how to reach a “consensual” restructuring with financial stakeholders, following a media report that it was mulling filing for Chapter 11 bankruptcy protections in the United States.
Gol said in a statement it did not as of yet have a framework for how the restructuring would be implemented.
On Sunday, newspaper Folha de Sao Paulo said the company was considering filing for bankruptcy protection in the United States within the next month. The airline’s shares are down about 9% this week following the report.
According to its statement, Gol stressed its commitment to raising funds to strengthen its cash position.
The company has been struggling with high debt and last month hired Seabury Capital to help establish a capital structure review that would address liability management, financial transactions and other measures to enhance its liquidity.
(Reporting by Andre Romani; Editing by Sarah Morland)