We are advising Azul in connection with its chapter 11 restructuring

Davis Polk is serving as lead counsel to Azul S.A. and its subsidiaries (collectively, “Azul” or the “company”) in connection with the company’s comprehensive restructuring under chapter 11 of the Bankruptcy Code. On December 19, 2025, less than seven months after Azul commenced its chapter 11 cases, Judge Sean H. Lane, United States Bankruptcy Judge for the Southern District of New York, entered an order confirming the company’s largely consensual plan of reorganization.

The cornerstones of Azul’s plan—which will reduce the company’s debt by more than $3 billion and enhance the company’s liquidity and operational profile, while preserving the jobs of over 15,000 Azul crewmembers—include: (i) the equitization of certain prepetition secured claims, (ii) the optimization of Azul’s fleet through the renegotiation of aircraft lease agreements and (iii) an equity rights offering of up to $950 million, of which $850 million is either backstopped or committed by key strategic stakeholders.

The plan, which follows a global settlement among Azul, an ad hoc group of secured noteholders, and the official committee of unsecured creditors, received the overwhelming support of over 92% of creditors in each voting class.

In confirming the plan, Judge Lane overruled objections of the office of the United States Trustee to the plan’s third-party releases, exculpation provisions and indenture trustee fees.

Azul is the largest airline in Brazil measured by cities served and direct domestic routes, with more than 800 daily flights to 137 destinations. With a fleet of approximately 200 aircraft, Azul operates a network of 250 direct routes. Azul’s flight network also includes select international destinations.

The Davis Polk restructuring team includes partner Timothy Graulich, counsel Joshua Y. Sturm, Stephen D. Piraino, Jarret Erickson and Richard J. Steinberg and associates Andrew Frisoli, Motty (Mordechai) Rivkin and Benjamin Weissler. The capital markets team includes partner Manuel Garciadiaz and counsel Konstantinos Papadopoulos. The litigation team includes partners Ben Kaminetzky and Lara Samet Buchwald and counsel Marc J. Tobak. The finance team includes partner James A. Florack and counsel Yuko Sin. Members of the Davis Polk team are based in the New York and São Paulo offices.

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