By Brazil Stock Guide – Azul SA (AZUL) said it secured an additional $100 million commitment from certain creditors and stakeholders to support an early exit from its U.S. court-supervised restructuring process, strengthening its capital plan as it moves toward completion of the proceedings.
The Brazilian airline said Wednesday (21) that the new funding will be added to a broader financing package that includes a firm $650 million backstop for a public equity offering and $200 million expected from strategic investors. Together, the transactions raise the total capital targeted by the company to as much as $950 million.
“The incremental $100 million investment, together with the $650 million firm backstop commitment in the context of the exit public offering and the $200 million to be invested by strategic investors, will increase the total amount of investments to be raised by the company from $850 million to $950 million,” Azul said in a statement.
According to the company, the additional funding underscores creditor and stakeholder support for its business plan. “This additional investment signals the support of the company’s creditors and stakeholders and their confidence in Azul and its business plan,” the airline said.
Azul also presented an updated business plan, citing developments that significantly reduce execution risks. These include agreements with aircraft manufacturers that improve fleet delivery schedules, as well as new arrangements with local banks providing more favorable commercial terms. The company said the revised plan reflects actual operating results through November 2025 and an agreement reached with the Unsecured Creditors Committee as part of the U.S. proceedings.
“The Updated Business Plan also reflects the company’s actual results through November 2025 and the agreement reached with the Unsecured Creditors Committee within the restructuring process. The company further informs that the Updated Business Plan maintains an estimated pro forma net leverage of 2.5 times upon exit,” Azul said.
The airline said it is also discussing an alternative structure with stakeholders that could allow it to exit the process before receiving all required regulatory approvals tied to the strategic investments. Under that scenario, post-exit investments would be implemented through mechanisms designed to preserve the economic rationale of the transactions, subject to subsequent regulatory clearance.
“In this case, under the terms currently discussed among stakeholders, the strategic investment to be implemented after the exit would be carried out through a mechanism that preserves the intended economic rationale, such as through subscription warrants, the exercise of which, as well as all related rights, would be subject to prior regulatory approval,” the company said, adding that such arrangements remain subject to final definitive documentation.
As part of the plan, Azul reiterated that it will carry out a public offering of up to $950 million, anchored by certain stakeholders under a backstop commitment agreement and potentially including one or more strategic investors. Shares issued in the offering will be priced at a 30% discount to the company valuation defined in the restructuring plan, resulting in an estimated dilution of about 80% of the existing shareholder base.
Azul said it continues to execute the steps set out in its restructuring plan on schedule, emphasizing transparency and operational stability throughout the process.
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