Air firm agreements with creditors to accelerate the process and attracts the interest of US companies to sell participation
Azul announced on Wednesday (28.MAI.2025) that requested entry into the process of Chapter 11 (equivalent to judicial recovery in Brazil) in the United States. This is the statement (PDF – 188 kb).
The company has signed restructuring support agreements with its creditors, including AERCAP, its largest aircraft rental that represents about 60% of Azul’s aircraft lease liability.
The financial restructuring process will also support 2 US companies: United Airlines and American Airlines. Companies will contribute US $ 300 million in Azul to accelerate the recovery process and will have a participation in the Brazilian company at the end of the process. The participation was not disclosed.
Azul reported that the Chapter 11 process includes approximately $ 1.6 billion in financing, eliminating more than $ 2.0 billion in debt and forecast of up to $ 950 million in new capital contributions at the time of departure from the process.
- What is Chapter 11 – It is the chapter of the US Bankruptcy Law that deals with the financial restructuring of companies, a mechanism equivalent to the Brazilian judicial recovery. The process allows companies to recover their financial situation, including debt renegotiation, while continuing to operate normally with the supervision and judicial approval of the United States. The mechanism has been successfully used by many international airlines, including Latam, United Airlines, Delta, Aeroméxico, Avianca Colombia and Gol.
Fusion with goal
Azul signed in January this year a memorandum of understanding with Gol to explore the feasibility of a merger between the two companies.
With the process of financial recovery of Azul, the merger process must be postponed, but the Poder360 It found that the possibility is not discarded.
Azul says that restructuring support agreements already signed with their greatest creditors and the support of United and American should accelerate the conclusion of the judicial recovery process.
The company’s focus is right now on its financial restructuring, but the possibility of merging with the goal is still open.
