Azul (NYSE:AZUL) has entered into restructuring support agreements with its key financial stakeholders, including its existing bondholders; largest lessor, AerCap, representing the majority of the company’s aircraft lease liability; and strategic partners, United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL).
To carry out the agreements, which include approximately $1.6 billion in committed financing during the process, the elimination of over $2.0 billion in debt, and potential equity financing of up to $950 million upon emergence—Azul (NYSE:AZUL) is utilizing the Chapter 11 process in the United States.
“AerCap has signed a support agreement with its longstanding partner Azul. As the airline moves through its restructuring process, we are very confident Azul will emerge stronger than ever,” said Aengus Kelly, Chief Executive Officer of AerCap.
“Together with Azul, we are the largest owners of Embraer E2 commercial aircraft, supporting the Brazilian aviation industry like no other.”