Brazilian airline Azul has received final approval from the court for its Chapter 11 proceedings, including approval for its $1.6bn debtor-in-possession (DIP) financing.
“This reinforces how Azul continues to work in constant partnership with the stakeholders involved in the process,” the company said in a statement.
The final approval will allow the company to operate its business as usual, while advancing its accelerated transformation plan.
“With the final DIP approval in hand and the continued backing of our key financial stakeholders, Azul is well-positioned to execute on our transformation plan and emerge as a stronger, more competitive airline,” said Azul CEO John Rodgerson.
The company also filed its previously disclosed agreement with AerCap, which represents the majority of the company's aircraft lease liabilities. Azul said the agreement generates contractual benefits to Azul of approximately $1bn. The agreement is scheduled to be heard on August 13, 2025, at the next omnibus hearing.
Azul said these actions will allow it to optimise its fleet, reduce long-term costs, and strengthen its capital structure.