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Brazil's Gol taken to arbitration over cash advances -newspaper

Credit: REUTERS/NACHO DOCE

Some shareholders in Brazil's Smiles Fidelidade loyalty program have filed an arbitration proceeding against Gol Linhas Aereas Inteligentes over 1.6 billion reais ($285 million) in advanced ticket sales, newspaper Valor Economico reported on Tuesday.

SAO PAULO, Oct 20 (Reuters) - Some shareholders in Brazil's Smiles Fidelidade SMLS3.SA loyalty program have filed an arbitration proceeding against Gol Linhas Aereas Inteligentes GOLL4.SA over 1.6 billion reais ($285 million) in advanced ticket sales, newspaper Valor Economico reported on Tuesday.

Gol started tapping Smile for cash advances in March as the airline grappled with the impact of the pandemic, the report said.

Smiles is a separate company, but is controlled by the Brazilian airline.

Hedge funds Samba Theta and Centauro I, which filed the arbitration proceedings nearly three months ago, consider this cash advance an abuse of power.

Gol and Smiles were not immediately available for comment.

($1 = 5.6064 reais)

(Reporting by Carolina Mandl; editing by Jason Neely)

((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;))

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