New York Court Confirms Azul’s Chapter 11 Reorganization Plan

Overview

• Azul said eligible creditor classes backed the plan by more than 90% ahead of the judge’s confirmation.
• The approved plan is expected to reduce net debt to about US$3.7 billion from roughly US$7.0 billion through lease and interest cost cuts and debt conversions.
• The restructuring includes a US$1.6 billion financing and a planned public equity raise of US$950 million at about a 30% discount to book value, subject to required registrations in Brazil.
• Current shareholders face significant dilution as the company moves to convert preferred into common shares and overhaul its bylaws and board to reflect a new ownership structure.
• Operations continue normally as Azul targets an early‑2026 exit, with creditor and partner support that includes AerCap and reported US$100 million investments each by American Airlines and United Airlines for 8.5% stakes.