Azul's board approves subscription bonus, strategic committee

Azul's board approves subscription bonus, strategic committee

Azul Secures Additional Capital, Advances Chapter 11 Restructuring

Azul S.A. (OTC: AZULQ) has announced a revised capital-raising plan to support its emergence from Chapter 11 bankruptcy, increasing total funding commitments to US$950 million. This includes an incremental US$100 million investment from creditors and stakeholders, alongside a US$650 million subscription commitment and US$200 million from strategic investors according to the filing. The updated funding structure reflects broad stakeholder support and aligns with the airline's revised business plan, which projects a pro forma net leverage ratio of 2.5x at emergence.

The restructuring roadmap has been further de-risked through agreements with original equipment manufacturers (OEMs) to improve fleet delivery schedules, favorable terms with local banks, and a settlement with the Unsecured Creditors Committee as detailed in the filing. These developments reduce execution uncertainty and support Azul's goal of exiting Chapter 11 with lower debt, lease liabilities, and leverage.

To maintain flexibility, Azul has outlined an alternative stakeholder-backed structure involving warrants exercisable only after regulatory approvals for strategic equity investments. This mechanism allows the company to emerge from Chapter 11 ahead of final regulatory clearances while preserving the economic terms of the investments.

Recent operational updates include the exercise of subscription warrants, resulting in significant share issuance and capital increases. For instance, the conversion of preferred shares into common shares and the mandatory conversion of convertible debentures led to the issuance of over 69 trillion common shares, further diluting existing shareholders. The company also confirmed plans for a new public offering to raise up to US$950 million, with shares priced at a 30% discount to its restructured equity value according to the filing.

Azul emphasized that implementation of its Chapter 11 plan remains on schedule, with key milestones including creditor conversions, governance reforms, and regulatory filings. The airline reiterated its commitment to transparency and operational continuity during the restructuring process as reported.

According to the filing: Azul S.A. SEC Filings (January 2026, December 2025).