Delta Air Lines is facing a fresh Latin American headache as a Monday deadline nears for former Brazilian partner Gol Linhas Aereas Inteligentes to repay a $300 million loan that the U.S. carrier guaranteed, Reuters reported. If Gol fails to repay — which ratings agencies say is looking more likely — Delta would have to honor the debt on Gol's behalf, honoring the five-year-old agreement. But just like Gol, the Atlanta-based carrier, which said in July it was burning $27 million a day here has little cash to spare due to the coronavirus pandemic. Gol’s struggles are just the latest challenge for Delta, whose investments in Latin America, once seen as a growth area, have faltered due to COVID-19. Delta's 49 percent stake in Aeromexico and 20 percent stake in LATAM Airlines Group are at risk of dilution or being wiped here out as both airlines undergo bankruptcy restructurings. For Gol, Brazil’s largest carrier, the due date of the Delta-backed private loan comes amid a severe cash crunch. The loan was extended by unidentified private investors. By Monday, before repaying the loan, Gol could have just 1.6 billion reais ($285.19 million) left in cash, Reuters calculated. The calculation is based on Gol’s cash and cash equivalents, as well as its liquid investments, as of June 30, minus its expected cash burn of 3 million reais a day.
