Azul Airlines Pursues Critical Restructuring Approvals in US Bankruptcy Court
New York, NY – Azul Brazilian Airlines (AZUL4) appeared before the United States Bankruptcy Court for the Southern district of New York today to advance its Chapter 11 judicial recovery process. The airline is requesting a series of approvals designed to provide greater operational flexibility and time to negotiate with creditors and stakeholders as it effectively works to restructure its finances.
The petitions filed by Azul encompass several key areas. The airline is seeking extensions to the deadlines for submitting and voting on its reorganization plan, a crucial step in the bankruptcy proceedings. Additionally, Azul requested an extension to the timeframe for deciding whether to assume or reject existing aircraft leasing contracts – a notable factor given the airline’s fleet size and operational costs.
Beyond deadlines, Azul is also requesting court approval for procedures related to the analysis and reconciliation of creditor claims, ensuring a fair and transparent process for all parties involved. The airline further seeks protections for confidential facts, vital for ongoing negotiations, and approvals to manage existing aircraft and engine lease agreements effectively. Azul is asking for authorization to enter into new funding agreements with strategic partners, possibly injecting much-needed capital into the restructuring effort.
according to court filings, these measures are intended to provide Azul with the necessary time and flexibility to align its fleet and financial obligations with its overall business plan. Optimizing credit management and safeguarding sensitive information are also central to the airline’s strategy for a successful reorganization. All requests remain subject to final judicial approval.
Azul initiated its Chapter 11 proceedings in the US earlier this year, citing the impact of the COVID-19 pandemic and challenging macroeconomic conditions. The company aims to emerge from bankruptcy with a more lasting financial structure, allowing it to continue serving its customers and contributing to the Brazilian aviation market.
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