(Bloomberg) -- Gol Linhas Aereas Inteligentes SA is seeking around $950 million to fund itself in bankruptcy, according to people with knowledge of the matter. 

The Brazilian low-cost airline is in discussions with creditors to raise the debtor-in-possession financing ahead of a planned Chapter 11 filing in the US, said the people, who asked not to be identified discussing a private matter.

A representative for Gol declined to comment. Folha de S. Paulo earlier reported that Gol was planning to file for bankruptcy. 

In December, Gol said it was working with Seabury Capital to review its capital structure. The airline has already gone through several rounds of restructuring and capital raising since the onset of the pandemic. It’s working on a deal with its own creditors while also seeking to renegotiate agreements with lessors. On top of its high costs and heavy debt burden, the company has struggled to take advantage of a rebound in demand for Brazillian flights due to a delay in Boeing Co. airplane deliveries.

Earlier this month, Abra Group Ltd., the parent company of Brazil’s Gol and Colombia’s Avianca, met with creditors to kickstart debt talks, Bloomberg previously reported. Gol and Avianca’s top shareholders agreed to form Abra about two years ago after the Colombian carrier exited bankruptcy. The airlines continue to operate independently. 

Gol’s short-term debts, which include leases and borrowings, were 2.9 billion reais ($576 million) at the end of September, while its cash holdings were under 1 billion reais, according to data compiled by Bloomberg. 

--With assistance from Jill R. Shah.

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