By Luciana Magalhaes

SAO PAULO (Reuters) - Brazilian airline Gol on Thursday announced that it has struck a new deal with key creditors, paving the way for the company to emerge from Chapter 11 bankruptcy protection likely by the end of June.

The agreement, which involves investors holding a portion of the airline’s senior secured notes due in 2026, will provide $125 million in financing, according to a regulatory filing.

With the new development, Gol has now secured at least $1.375 billion in financing to exit bankruptcy, the filing showed.

Gol said that support from this majority group of creditors will substantially increase the chances of its restructuring plan being approved.

The airline will now adjust its recovery plan to reflect the terms of this new accord, which also foresees that creditors who are not part of the investing group will be eligible to receive up to $100 million in new debt. Those securities will not be convertible into shares.

Additionally, other investors outside of the main group will have the opportunity to participate in the financing, with up to $50 million available, Gol said in the filing.

The carrier has been in bankruptcy proceedings since early 2024.