Brazil's GOL Linhas holders waive debenture covenant non-compliance

By Marisa Wong

Madison, Wis., March 19 - GOL Linhas Aereas Inteligentes SA obtained a waiver from holders of its fourth and fifth issue debentures in relation to its non-compliance with certain financial covenants under the debentures, according to a 6-K filed Monday with the Securities and Exchange Commission.

The waiver was approved at a meeting of debenture holders on Feb. 15.

Last month GOL Linhas said it anticipated that as of Dec. 31 it was not in compliance with certain restrictive contractual clauses. The company requested waivers for this non-compliance and reclassified its debentures, totaling R$1.09 billion, to short-term debt from long-term debt in its 2011 annual financial statements.

According to the filing, the company is now compliant with its obligations under the terms of the debentures, and the debenture issues will once again be classified as long-term debt.

The discount air carrier is based in Sao Paulo.

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