Sao Paulo (AFP) – Brazil’s biggest airline by number of flights and destinations, Azul, announced Wednesday it had filed for bankruptcy protection in the United States to try to restructure debt arising from the pandemic and from supply chain issues.
Azul said that it would continue flying “as normal” through the Chapter 11 process, which gives companies protection from creditors while they reorganize their finances under judicial supervision. It noted that key stakeholders, including United Airlines, American Airlines, and aircraft leasing giant AerCap, had committed to around $1.6 billion in financing to help eliminate over $2 billion in debt.
Once the restructuring is completed, Azul will aim to raise $950 million in equity financing. Founded in 2008, Azul states it operates around 1,000 flights a day to over 160 destinations. Its main Brazilian competitor, Gol, filed for Chapter 11 bankruptcy in the United States in January 2024.
© 2024 AFP
