May 6, 2016 / 1:42 PM / 2 years ago

UPDATE 1-Brazils Gol bondholders reject restructuring proposal

(Updates with Gols comments)

SAO PAULO, May 6 (Reuters) - A group of bondholders in Brazil’s Gol Linhas Aereas Inteligentes SA decided on Thursday to reject the exchange offer announced by the airline, the law firms representing them said.

The investors hold about 25 percent of the $780 million in outstanding debt that Gol is seeking to restructure, said the statement by White & Case LLP and Pinheiro Guimarães Advogados. The exchange offer terms imply losses of up to 70 percent to the bondholders.

In a statement released on Friday, Gol Chief Financial Officer Edmar Lopes said the bond exchange offer is fair, but the company is willing to negotiate.

“We can change the terms if circumstances demand it,” he said.

The bondholders said Gol rejected negotiations before announcing the exchange offer terms and that the company needed to ensure creditors are treated equally.

Lopes said earlier this week that local lenders Banco Bradesco SA and Banco do Brasil SA would not have to take any discount on their 1 billion reais ($283 million) debt.

$1 = 3.5349 Brazilian reais Reporting by Tatiana Bautzer; Editing by Lisa Von Ahn

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