Azul Linhas Aéreas is reportedly close to an agreement with aircraft lessors to put an end to speculation about a possible request for financial restructuring in the US, the so-called Chapter 11.
According to Reuters sources, the airline may offer a 20% stake to companies that lease part of its aircraft fleet in exchange for paying off US$600 million in debt.
Azul shares reacted in trading on Friday, closing with an appreciation of more than 22%.
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The out-of-court settlement was reportedly discussed in meetings in New York, said one of the sources to the news agency.
“It’s not 100% what Azul would like nor 100% what the lessors would like, but it can be a good way to alleviate this burden,” one of the people told Reuters.
Short-term debt and talks about a potential tie-up with Gol
The financial situation of Azul, Brazil’s third-largest airline, has deteriorated amid problems with the country’s flight network and the currency devaluation.
In 2023, the company had already reached an agreement to pay off US$570 million in debts with suppliers by offering preferred shares.
In August, Bloomberg reported that Azul was considering filing for Chapter 11, which caused shares to plummet.
The company’s management vehemently denied this, stating that it was evaluating other alternatives such as offering cargo division as collateral to creditors.
Another path being considered involves some type of tie-up with the Abra Group, which controls Avianca and Gol, the latter of which is undergoing financial restructuring in the US.
