Delta might have 300 million more reasons to fret over its bank accounts. Reuters reports that the airline “may have to repay $300 million on behalf of Brazil’s Gol.”
About five years ago, Delta guaranteed a debt on behalf of Gol. (No good deed goes unpunished, right?)
And the hits keep coming:
Gol’s struggles are just the latest challenge for Delta, whose investments in Latin America, once seen as a growth area, have faltered due to COVID-19.
Delta’s 49% stake in Aeromexico and 20% stake in LATAM Airlines Group are at risk of dilution or being wiped here out as both airlines undergo bankruptcy restructurings.
Delta sold its stake in Gol in 2019 to buy its stake in Gol rival LATAM Airlines but maintained the loan guarantee.
More Travel Headlines
American tourist faces jail, $500G fine for violating Canada’s coronavirus restrictions
Air bridge between London and New York ‘being discussed at very senior level’
Disney, Universal Say California Parks Are Ready To Reopen
Delta has put 240 people on ‘no fly list’ for not wearing masks, CEO says
Featured image: ©iStock.com/Boarding1Now
Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
2 Comments
Happy I don’t own any Delta stock
Would Delta have access to any assets, put up as collateral, such as the planes? Not that aircraft are in demand now, but at least it’s something.