Azul Announces Exit From U.S. Chapter 11 After Equity Raise and Airline Backing

Overview

• Azul said it has left Chapter 11 after completing transactions that include roughly US$850 million in new equity and about US$2.5 billion in reductions to debt and lease obligations.
• Investment commitments totaling US$300 million were confirmed, with US$100 million each from American Airlines, United Airlines, and certain existing creditors.
• United’s US$100 million was tied to Azul’s public share offering settling on Feb. 20, while American’s participation is via warrants subject to conditions including CADE approval.
• Brazil’s CADE authorized United to lift its stake in Azul to about 8%, aligning with the restructuring’s equity steps.
• Azul’s share sale raised roughly R$4.98–R$4.99 billion, the stock fell about 30%–36%, new shares are due to start trading on Feb. 23, and the board approved subscription warrants for nearly 4.9 trillion shares with potential dilution of up to 12.53%.