Delta Air Lines is facing a fresh Latin American headache as a Monday deadline nears for former Brazilian partner Gol Linhas Aereas Inteligentes to repay a $300 million loan that the U.S. carrier guaranteed.
FILE PHOTO: Captain Natalia Weiss and co-pilot Thays Goncalves of Brazilian Airline GOL prepare before taking off with a full female crew in the mark of International Women's Day, in Sao Paulo, Brazil, March 8 2020. REUTERS/Rahel Patrasso/File Photo
“Gol is facing constant cash burn without refinancing possibilities,” said Amalia Bulacios, who covers Gol for S&P Global Ratings, which rates its debt as CCC-, at risk of default. Gol and Delta declined to confirm if any negotiations were occurring. A source familiar with the matter said negotiations were indeed taking place.
“There’s a certain aversion to Brazil, a certain aversion to airlines, and then we’re kind of in the cross-set of that bucket,” Gol’s CFO Richard Lark said during the company’s earnings call. “It’s not really there, the private market.”Gol’s debt troubles show how quickly the coronavirus upended the balance sheets of airlines around the world.
Delta sold its stake in Gol in 2019 to buy its stake in Gol rival LATAM Airlines but maintained the loan guarantee.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
$300 Unemployment Benefits: Here’s When Payments Go Out In Each StateFEMA has approved more than half of the states to begin paying a $300 unemployment benefit. Here's when payments will begin in each state.
Read more »
New $300 boosted unemployment arrives in Arizona, but not without headaches and confusionArizona was among the first states to be approved to issue the new $300 per week in federal unemployment benefits. Not everyone is seeing the boosted aid.
Read more »
Tampa's Reliaquest hauls in $300 million while bucking tech culture - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
More than 5 million people won't get the $300 unemployment boost right nowMore than a dozen states haven't yet been approved to offer a $300 weekly federal boost to unemployment benefits. That leaves more than 5 million workers out of the money.
Read more »
Three states begin paying out $300 unemployment benefits, but most others will take longerThirty-eight states are in the process of implementing a presidential memo that provides an extra $300 to $400 of weekly jobless benefits, but only three states have begun paying out the additional benefits.
Read more »
More than half of states are now approved for the extra $300 per week in unemployment insuranceThe majority of U.S. states are now approved to send workers the extra $300 weekly unemployment benefit from the federal government.
Read more »