The Azul airline announced this Friday (12/12) that the United States court had approved the legal recovery plan presented by the company under Chapter 11 – a mechanism equivalent to judicial recovery in Brazil. According to the company, the proposal received approval from more than 90% of all classes of creditors qualified to vote.
With the confirmation of the project, Azul advances in the process that began on May 28 of this year, when it filed a request with the US court to reorganize its financial obligations. The company was the last, among the main Brazilian airlines, to file for Chapter 11.
According to Azul, the restructuring includes a debt reduction of more than $3 billion, in addition to reductions in obligations related to aircraft leases, annual interest expenses and recurring fleet costs. The company also estimates that the legal recovery process will be completed in early 2026.
Read also
-
Business
Azul updates its plan and plans to exit from receivership in 2026
-
Business
Azul increases its revenues, but sees its losses climb by more than 1,000%
-
Business
Judicial recovery: Azul announces an agreement with some of its creditors
In a statement to the market, the company said that the approved plan includes commercial agreements and changes to aircraft leasing contracts, measures which, according to the company’s own assessment, increase long-term financial flexibility and create the conditions for growth considered sustainable after exiting the process.
Another focal point of the restructuring is the anticipation of a public stock offering that could reach up to $950 million. The operation is divided into stages and includes, among other aspects, the conversion of credits from certain creditors into participation in the capital of the company.
Judicial recovery
Judicial recovery is a process that allows organizations to renegotiate their debts, thus avoiding the closure of activities, layoffs or non-payment of employees.
Through this instrument, companies are freed from paying their creditors for a certain period of time, but they must present a plan to settle their accounts and continue their activities.
This is essentially an attempt to avoid bankruptcy.
About The Author
