Azul concludes restructuring process and emerges from Chapter 11 in the US
Azul concluded (20-Feb-2026) its financial restructuring process in the US, with consequent emergence from Chapter 11 conducted before the US Bankruptcy Court for the Southern District of New York. Azul stated all conditions under the plan of reorganisation "have been satisfied or waived", and provided the following restructuring results:
- Reduction of loans and financing debt by approximately USD1.1 billion;
- Reduction of aircraft lease debt by nearly 40%;
- Estimated reduction in annual interest payments of more than 50% compared to pre‑Chapter 11 levels;
- Estimated reduction of approximately one third of recurring aircraft leasing;
- Estimated pro forma net leverage after implementation of the plan of reorganisation, upon emergence of less than 2.5x;
- Capital raise of approximately USD1.4 billion through the issuance of senior notes and USD950 million in equity commitments. [more - original PR]
Background ✨
Azul secured equity investments from United Airlines and American Airlines, each committing USD100 million, and received approval from Brazil's Administrative Council for Economic Defense for United's investment, which was scheduled to settle on 20-Feb-2026. Additional capital was raised through a USD1.4 billion exit financing offer and incremental investments from existing creditors, supporting Azul’s emergence from Chapter 11 proceedings in early 20261 2 3 4.