Brazil's Gol Hires PJT Partners as Financial Adviser
March 28 2016 - 9:30AM
Dow Jones News
SÃ O PAULO—Brazilian airline Gol Linhas Aereas Inteligentes SA
said Monday it has hired U.S.-based PJT Partners Inc. as a
financial adviser, as the country's deep economic recession is
hurting demand for air travel.
Gol said in a statement it hired "PJT Partners to advise the
company in connection with measures to strengthen its capital
structure and liquidity and to improve the profile of its
debt."
In February, Moody's Investors Service downgraded its rating on
Gol because the airline faces a cash crunch in coming months as
debt payments come due.
Moody's cut Gol's corporate family rating to Caa1 from B3 and
its foreign currency rating for Gol Finance's perpetual notes and
senior notes due in 2017 to Caa2 from B3.
Gol is Brazil's, and Latin America's, biggest low-cost airline
in terms of revenue. Brazil's weak economy has hurt sales, and the
company's traffic fell 9% in the fourth quarter from a year
earlier.
After contracting 3.8% last year, Brazil's economy is expected
to shrink 3.66% this year, according to economists.
Gol has "insufficient liquidity" and faces a difficult market
situation, and will need to either sell assets, carry out a capital
increase or restructure its debt in coming months to meet its debt
service needs in the next year to year and a half, Moody's said
last month, while expressing confidence in the company's
management.
Gol on Tuesday will publish its financial results for the fourth
quarter and for the full year of 2015.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
March 28, 2016 09:15 ET (13:15 GMT)
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