Latam’s Attempt to Acquire GOL’s Assets Thwarted by Legal Ruling
GOL Linhas Aéreas gained a US court’s approval to question Latam Airlines’ leaders in a notable legal development.
This comes as GOL goes through bankruptcy protection in the US since January 27, 2024. The airline accuses Latam of breaking rules set during its financial redo.
On February 12, 2024, the court addressed GOL’s claim. GOL said Latam wanted its planes to grow.
Jerome Cardier, Latam’s CEO in Brazil, had shown interest in GOL’s unused planes. This clashed with GOL’s bankruptcy protection, which keeps its plane leases safe.
GOL found out about Latam’s plan for Boeing 737s right after seeking bankruptcy protection.
GOL uses this model exclusively, unlike Latam’s Airbus A320s. This move by Latam was troubling for GOL.
GOL told the court, “Right after our Chapter 11 filing, we learned Latam wanted our planes and crew.” This confirmed Latam’s targeted effort to use GOL’s assets, ignoring legal protections.
The court’s decision lets GOL’s lawyers ask Latam’s executives about trying to get GOL’s planes.
But, the court said no to GOL’s request for pilot hiring info. It allowed three interviews with Latam’s executives, each up to five hours.
GOL was pleased with the ruling. It sees a chance to clear up Latam’s actions and check their legality under US bankruptcy law.
Background
Gol Airlines had accused Latam Airlines of trying to capitalize on its financial issues by targeting its Boeing planes and pilots
Gol suspects Latam aims to disrupt its operations, possibly breaching Chapter 11’s automatic stay rule. This rule protects companies from certain creditor actions.
Latam refutes Gol’s claims, stating it’s searching for narrow-body aircraft due to supply chain issues affecting Airbus’s and Boeing’s availability.
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief