Azul, one of Brazil’s three main airlines, has filed with the Securities and Exchange Commission (CVM) an application for registration of a public offering for the primary distribution of common and preferred shares.
A public offering is the process of making a certain number of bonds and securities available for sale to the public.
This goes from the investigation of market intentions regarding the securities offered to their actual placement with the public, including the disclosure of information, the subscription period, among other stages.
To understand
The operation announced by Azul involves the issuance of 723.9 billion new ordinary shares and 723.9 billion new preferred shares.
The price per share was set at R$0.00013527 for ordinary shares and R$0.01014509 for preferred shares. The total estimated value is 7.44 billion reais.
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According to a statement from Azul, the subscription will be done in baskets: 1 million ordinary shares for R$135.27 or 10,000 preferred shares for R$101.45.
In practice, the share offering aims to enable the compulsory capitalization of the company’s debts through the conversion into shares of securities issued abroad.
Shareholders will benefit from a priority right with deadlines set for December 19 and 30, 2025. The subscription priority period will take place between December 23, 2025 and January 5, 2026.
The new shares are to be traded on the Brazilian Stock Exchange (B3) starting January 8, with settlement on January 9 and crediting of shares and bonuses on January 12, 2026.
Progress in legal recovery in the United States
On the 12th, Azul informed the market 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 started in May this year, when it filed a request with the North American 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 provides for 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.
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.
At the end of May, Azul filed for judicial recovery in the United States, through Chapter 11 – a legal mechanism that allows the reorganization of the debts of companies in financial difficulty.
The company chose the United States because it considers the country’s laws to be more flexible and also because the majority of its creditors are foreign – and most contracts with suppliers have jurisdiction in New York State.
According to Azul’s estimates, the exit from receivership should take place at the beginning of 2026.
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