By Brazil Stock Guide – Azul S.A. (B3: AZUL4; OTC: AZULQ) said it reached an agreement with the Official Committee of Unsecured Creditors appointed by the U.S. Trustee’s Office, securing the group’s support for the airline’s Chapter 11 restructuring plan. The deal represents a major milestone toward a consensual resolution of the case, the company said.
Under the terms, creditors classified as unsecured may opt to receive either up to US$20 million in cash or participate in a trust fund (GUC Fund) benefiting that class. Azul will contribute to the fund up to 5.5% of its share capital in warrants tied to a post-restructuring valuation of US$3.8 billion, plus three contingent annual payments of up to US$6.5 million each, depending on financial performance in 2027, 2028, and 2029. The airline will also cover administrative and trustee expenses of between US$2.5 million and US$5 million, according to the plan filed in U.S. court.
Azul also filed a revised reorganization plan and disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York, aligning with restructuring support agreements signed in May with bondholders and other stakeholders. The company stressed that the disclosure statement’s figures shouldn’t be interpreted as projections or investment guidance, but rather as part of the legal documentation required under Chapter 11 rules.
The airline said the agreement strengthens its prospects for a successful restructuring, preserving operations and reinforcing capital structure. Azul added that it will keep shareholders, customers, and employees informed through its dedicated website www.azulmaisforte.com.br and the court administrator’s portal cases.stretto.com/Azul.
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