Azul gets court nod; US airlines to invest

A U.S. bankruptcy judge on Friday approved Azul's debt restructuring, allowing the Brazilian airline to slash more than $2 billion in debt and raise capital through a new equity rights offering and investment from American Airlines and United Airlines.

- CORRESPONDENT

Azul had filed for Chapter 11 bankruptcy in New York in May, aiming to cut its debt and make its business more resilient to market challenges like fluctuations in fuel prices and currency exchange rates.The company's bankruptcy plan converts much of its preexisting debt into equity and allows it to raise cash by selling new equity shares. As part of it, United and American agreed to invest up to $300 million in Azul's equity.

U.S. Bankruptcy Judge Sean Lane approved Azul's restructuring plan at a court hearing in White Plains, New York.