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Delta will deepen its existing partnership with GOL Linhas Aereas Inteligentes to enhance the Latin American carrier’s financial position and liquidity.

Under the agreement, GOL’s controlling shareholder will invest up to $90 million in newly issued preferred shares of GOL, and Delta will invest up to $56 million in newly issued preferred shares of GOL. Delta will also guarantee third-party loans to GOL of up to $300 million.

“GOL plans to borrow the money this year, depending on market conditions, and feels it’s important to bolster the company’s liquidity,” said Edmar Lopes Neto, Chief Financial Officer of GOL.

Since 2012, GOL has raised funds to add foreign routes and invest in a turnaround strategy after years of loss. According to the most recent number released by GOL, the airline has a cash position of $1.1 billion. Delta holds a 3 percent nonvoting stake in GOL.

Delta and GOL also agreed to extend the terms of their strategic and commercial operating agreements.

The stock and loan transactions are subject to the execution and delivery of proper documentation and customary closing conditions, including required regulatory approvals.

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