Government closes agreement with Gol and Azul to reduce debt with the Union by R$ 5.8 billion

BRASILIA (Reuters) – The government reached an agreement with Gol (GOLL4) and Azul (AZUL4) to reduce the debt of the two airlines with the Union by around 5.8 billion reais in total, allowing payment to be made in up to 120 installments, informed the Attorney General of the National Treasury this Friday.

Azul will pay 1.1 billion reais of a debt of 2.8 billion reais. Gol’s debt went from around 5 billion reais to 880 million reais.

The discounts given to tax debts were not linear and depended on the debt portfolio and guarantees of each company, in addition to the payment capacity, according to the PGFN. The expectation is that payments will begin in around 30 days, after operational arrangements.

Read more: Gol reaches agreement and provides for installments of R$5.5 billion in tax debts

In a relevant fact released on Thursday, Gol, which is undergoing judicial recovery in the United States, said that the agreement will not impact its net financial debt.
When contacted by Reuters, Azul said it would not comment.