Abra, the holding company created to control the operations of Gol and Avianca, has hired Rothschild as financial advisor, according to two sources familiar with the matter.

Rothschild’s mandate follows Gol’s hiring of Seabury Capital for a broad review of the Brazilian airline’s capital structure, in order to address its short- and medium-term obligations.

Spokespeople at Abra and Rothschild did not respond to requests for comment on the matter.

Abra holds USD 1.2bn in exchangeable senior secured notes due 2028 issued by Gol, and provided a USD 451m credit line to the airline earlier this year, as part of a major debt restructuring that included the exchange of Gol’s 2024, 2025, 2026 and perpetual notes into the new 2028 secured bonds.

Gol’s short-term maturities totaled BRL 2.9bn (USD 586.5m) at the end of September, of which BRL 1.8 bn was leasing obligations and BRL 1.1bn was financial debt, according to Fitch Ratings. Its cash and cash-equivalents were at BRL 4.7bn, according to the company’s 3Q23 earnings release.

The low-cost carrier is in negotiations with lessors, but Gol needs a solution that also includes holdouts, particularly holders of its USD 342m 7.0% 2025 bonds, a bondholder said.

An early maturity clause provides for the acceleration of the recently issued 2028 bonds if more than 10% of Gol’s 2025 notes remain outstanding, as reported.

The Abra USD 960.741m 11.5% 2028 secured notes last traded at 77.6 on 7 December, according to MarketAxess. Gol’s USD 366.757m 8% 2026 secured notes traded at 38.125 today, and the USD 342.43m 7.0% 2025 notes traded at 37.75 also today.