Azul Airlines Announces Capital Increase as Part of Restructuring Deal
São Paulo, Brazil - Brazilian airline Azul's board of directors has approved a capital increase of up to 3.37 billion reais ($591 million) as part of an out-of-court restructuring agreement. The move gives lessors equity in lieu of approximately $550 million in obligations.
The capital increase was achieved through the issuance of new shares, with fresh investment from controlling shareholder David Neeleman. Neeleman currently holds a 67% stake in Azul's voting shares, while the remaining 33% are held by shareholders of Trip, an airline acquired by Azul in the early 2010s.
As part of the restructuring, Neeleman is expected to relinquish control of the company while remaining a major shareholder. In addition to the equity swap with lessors, Azul has secured financing from bondholders and is exploring a potential tie-up with rival Brazilian airline Gol.