COVER STORY: Ready to snap

COVER STORY: Ready to snap

Equity Corporate & Sovereign Strategy Features

When Gol found few takers for its bond swap offer in May, it was unconcerned. The Brazilian airline simply extended the deadline a few more weeks to give investors more time. When there was still little interest in the deal, which offered bondholders discounts to face value of between 30 and 70 cents on the dollar on $780 million of debt, it left the offer open longer. And a little longer again. The deal was fair, Gol said: it offered pick-ups to secondary market prices of 10% to 50%. Yet after finding scant interest after the fourth extension, it finally offered better terms. Bondholders were not just unimpressed with the initial rounds of offers, some came together to outright reject Go

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