Azul SA's Board Unanimously Approves Chapter 11 Filing in New York to Restructure Debts, Seek DIP Financing

Reuters
28 May
Azul SA's Board Unanimously Approves Chapter 11 Filing in New York to Restructure Debts, Seek DIP Financing

Azul S.A. has taken significant steps in its restructuring process by filing a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. The Board of Directors, after obtaining consent from the controlling shareholder, has decided it is in the best interest of the company to proceed with this action in the Southern District of New York. This move aims to facilitate a comprehensive restructuring plan that includes obtaining recognition and necessary legal adjustments in Brazil. Additionally, Azul plans to enter into a DIP Financing Agreement, involving Azul Secured Finance LLP and various creditors, to support its restructuring efforts. The filing and associated agreements are subject to approval by the court, marking a critical phase in Azul's strategy to stabilize and improve its financial position.

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