A US federal judge has rejected Brazilian carrier Gol’s previously approved bankruptcy restructuring plan, which was issued on 1 December. This decision comes six months after the airline successfully emerged from bankruptcy court protection.

The ruling was made by federal district judge Denise Cote, from the US District Court for the Southern District of New York. She cited concerns regarding provisions in the restructuring plan that required creditors to release claims against the airline.

Gol’s parent company, Abra Group, did not comment on the ruling or provide any information on the next steps for the airline.

Gol initially filed for bankruptcy court protection in January 2024 due to financial difficulties caused by the Covid-19 pandemic. On 21 May, Judge Martin Glenn approved the airline’s reorganisation plan, which included concessions from aircraft lessors, renegotiated aircraft supply agreements with Boeing, and restructured debt.

One notable aspect of the plan was that it stated creditors would be considered to have released their claims against the company unless they actively opted out of doing so. This was challenged by a trustee for the US government, who argued that this requirement violated state law.

While Gol was able to emerge from bankruptcy on 6 June thanks to securing over $2. 5 billion in fresh financing, the appeal against the plan continued to be reviewed by the court.

In her decision, judge Cote states that creditors were not obligated to respond to the opt-out opportunity, and that courts do not enter default judgments when parties have no duty to respond. This ultimately led to the appeal being approved on 1 December.

In conclusion, Gol’s previously approved bankruptcy restructuring plan has been rejected by a US federal judge, citing concerns over provisions related to creditors releasing claims against the airline. This decision comes after the airline successfully emerged from bankruptcy court protection six months ago.