Azul Linhas Aéreas Brasileiras filed for Chapter 11 bankruptcy in the United States, aiming to eliminate over USD2 billion in funded debt and secure around USD1.6 billion in debtor-in-possession financing.
The airline previously attempted a private financial restructuring to avoid bankruptcy but ultimately chose to initiate a Chapter 11 process after eliminating nearly €1.6bn in debt.
Azul’s fleet consists of 226 aircraft and over 16,000 employees, operating approximately 900 daily departures to various destinations including Brazil, the United States, and Europe.
The creation of a special independent committee aims to oversee the Chapter 11 process and provide recommendations, as Azul was the only major Brazilian airline to avoid previous bankruptcy procedures
John Rodgerson shared: the airline faced excessive debt largely due to the COVID-19 pandemic,. We now have an opportunity to clean it all up.”
