Ad Hoc Group of GOL Noteholders Rejects GOL's Proposed Exchange Offer

NEW YORK, May 5, 2016 /PRNewswire/ -- On April 26, 2016, an ad hoc group ("Noteholder Group") of holders of unsecured notes (the "Notes") issued by GOL Finance Inc., GOL LuxCo S.A. and VRG Linhas Aereas S.A. and guaranteed by GOL Linhas Aereas Inteligentes S.A. (collectively, "GOL") and certain Notes additionally guaranteed by VRG was formed.  The Noteholder Group is made up of over a dozen sophisticated financial institutions with vast experience in Latin America and holds approximately 25% of all outstanding Notes and more than 50% of the Notes due 2022 (which have an aggregate principal amount of US$325 million).  The Noteholder Group rejects the proposed exchange offer for the Notes launched by GOL on May 3, 2016 (the "Proposed Exchange Offer") and urges other holders of the Notes to reject it as well. 

The Proposed Exchange Offer seeks material concessions from noteholders but lacks sufficient financial and other information about GOL and its operations, including negotiations with other key parties in interest.  As announced on April 26, 2016, the Noteholder Group was formed to work with GOL and its advisors in understanding and addressing the issues facing GOL in light of Brazil's current economic challenges.  The Noteholder Group offered to assist GOL in exploring initiatives to further strengthen GOL's position as one of Brazil's leading airlines.  GOL, however, rejected repeated requests from the Noteholder Group to engage in meaningful discussions.  The Noteholder Group is disappointed that GOL launched the Proposed Exchange Offer without the input or support of any noteholder representative, such as the Noteholder Group, but nevertheless would still be receptive to initiating constructive discussions to address GOL's situation.  Any framework for such discussions must include (i) transparency and full access to information, (ii) equal treatment of similarly situated creditors and (iii) respect for the relative priorities of the various stakeholders in GOL's capital structure.

In the absence of any engagement by GOL, the Noteholder Group expects GOL to honor its obligations with respect to the outstanding Notes.  Holders of the Notes are encouraged to contact the Noteholder Group through its advisors White & Case LLP, Houlihan Lokey, Metrica Investimentos, and Pinheiro Guimarães - Advogados.  Contact details are as follows:

SOURCE White & Case LLP