The US Bankruptcy Court gave an order to GOL Linhas Aéreas Inteligentes SA, to obtain DIP financing on an interim basis on January 29, 2024. As per the order, the debtor has been authorized to obtain a super priority senior secured priming DIP financing in the amount of $950 million out of it $350 million issued on interim basis from TMF Group New York, LLC acting as the collateral agent. The DIP loan would either carry an interest rate equal to 30-day SOFR (subject to a 3.50% per annum SOFR floor, but without any credit spread adjustment), plus 10.50% per annum.

All interest shall be payable monthly in arrears in cash or in kind, at the Issuer?s option. along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries a commitment fee of 1% p.a. The DIP Facility shall terminate, and all DIP Facility commitments shall terminate, and all DIP Obligations shall be payable in full in cash on the earliest to occur of 12 months from the Closing Date, provided that the Issuer shall be permitted to extend the Termination Date, on not more than 2 occasions, by up to an additional 3 months for each extension, and the Termination Date so extended, the Scheduled Termination Date upon payment of an extension fee (payable in kind) in an amount equal to (x) 2.00% of the Total DIP Amount for the first extension and (y) 2.50% of the Total DIP Amount for the second extension, (b) conversion of any of the Chapter 11 Cases to a case under chapter 7 without the prior written consent of the Required DIP Noteholders (as defined below), (c) dismissal of any of the Chapter 11 Cases without the prior written consent of the Required DIP Noteholders, (d) the appointment of a chapter 11 trustee or an examiner with expanded powers, (e) the date of consummation of a sale of all or substantially all assets of the Debtors, (f) the effective date of a chapter 11 plan.

Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $10 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The Final Hearing is scheduled for February 20, 2024.