We are advising Azul in connection with its chapter 11 restructuring

Davis Polk is advising Azul S.A. and its subsidiaries (collectively, “Azul”) in connection with their restructuring under chapter 11 of the United States Bankruptcy Code. Azul intends to use the chapter 11 process to implement a comprehensive restructuring that will significantly deleverage its balance sheet by eliminating over $2 billion of debt, rationalize its fleet and position the company for long-term operational and financial success.

Azul has entered into restructuring support agreements with its key stakeholders, including its existing bondholders; its largest lessor, AerCap, representing the majority of the company’s lease obligations; and strategic partners United Airlines and American Airlines. Azul also secured commitments for a debtor-in-possession (DIP) financing facility that will provide Azul with approximately $670 million of new liquidity and equity financing of up to $950 million upon emergence from bankruptcy.

On May 28, 2025, Azul filed voluntary petitions for relief under chapter 11 in the United States Bankruptcy Court for the Southern District of New York. At a hearing held on May 29, 2025, Judge Sean H. Lane approved all of Azul’s first-day requests for relief, including the authority to pay employees and certain critical vendors and to continue operations in the ordinary course. Judge Lane also approved Azul’s DIP facility on an interim basis, providing Azul with immediate access to $250 million of liquidity.

Azul is the largest airline in Brazil measured by departures and cities served, with approximately 900 daily departures to 137 destinations in Brazil. With a fleet of 226 aircraft and more than 16,000 crewmembers, Azul operates approximately 300 direct routes. Azul’s flight network also includes select international destinations, including in the United States, Portugal, France, Spain, Argentina, Uruguay, Paraguay and Curaçao.

The Davis Polk restructuring team includes partners Marshall S. Huebner and Timothy Graulich, counsel Joshua Y. Sturm, Jarret Erickson and Richard J. Steinberg and associates Andrew Frisoli, Motty (Mordechai) Rivkin, Benjamin Weissler and Jacob Goldberger. The finance team includes partner James A. Florack and counsel Yuko Sin. The capital markets team includes partner Manuel Garciadiaz. Members of the Davis Polk team are based in the New York and São Paulo offices.

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