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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.

Adds shares, Gol's comments

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 coronavirus 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.

Shares in Smiles were up 2.5% in morning trading, outperforming Brazil's stock exchange index, while preferred shares in Gol were down 0.3%.

Both Gol and Smiles declined to comment on the matter.

($1 = 5.6064 reais)

(Reporting by Carolina Mandl; editing by Jason Neely and Bernadette Baum)

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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