GOL initiates proceedings to reorganize corporation

Brazil-based airline GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL) (B3: GOLL4) has announced its intention not to renew the operating and back office services of Smiles, and initiate proceedings aiming at a corporate reorganization, the company said.

The contemplated Reorganization includes the creation, by GLA, of preferred shares, with increased economic rights in relation to the common shares of GLA; the sale of common shares issued by GLA to GOL´s controlling shareholder, Fundo de Investimento em Participações Volluto; the merger of SMILES into GOL; the redemption of the GOL Redeemable Preferred Shares; the capital increase of GLA, against contribution, by GOL, of assets and liabilities related to activities of SMILES; and GOL´s migration to the Novo Mercado.

The terms of the Reorganization will be negotiated with SMILES´ Independent Committee and, where applicable, submitted for approval by GOL´s and SMILES´ shareholders.