Brazil’s Gol and Colombia’s Avianca said that they struck a deal to combine into a single holding company called Abra Group, as part of consolidation efforts. Abra Group will be jointly controlled by Avianca and Gol’s main shareholders. However, both airlines will operate independently and maintain their respective brands. Reuters adds that other investors committed to invest up to $350mn in Abra Group after the deal closes.
Separately, LATAM Airlines’ said that almost all creditors supported its reorganization plan taking place before a Manhattan court handling its Chapter 11 (Term of Day, explained below) bankruptcy case. LATAM Airlines filed for Chapter 11 in May 2020 due to the pandemic’s impact. The reorganization plan will allow creditors who choose to receive Class A or Class C convertible bonds to improve their recovery through an additional cash payment. The plan proposes an $8.19bn infusion through a mix of new equity, convertible notes and debt.