Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) has emerged from Chapter 11 bankruptcy proceedings in the United States after its court-approved plan of reorganisation became effective.

The Brazilian carrier recently concluded its restructuring after repaying in full the debtor-in-possession financing and completing its public offering of shares.

Azul’s restructuring involved securing USD850 million in new equity investments, including contributions from existing bondholders and USD100 million from United Airlines; executing a commitment with American Airlines for an additional USD100 million, although this remains subject to antitrust approval; raising USD1.375 billion in new exit notes; reducing loans, financing debt, and lease liabilities by USD2.5 billion compared with pre-Chapter 11 levels; cutting annual interest paid on loans and financing by 50%; and reducing fleet debt by 36% and aircraft leasing costs by one third.

The airline completed its restructuring in less than nine months. The process “has materially strengthened our balance sheet and positioned the airline for long-term stability. We are emerging from Chapter 11 with the support of some of the most respected financial and strategic partners in global aviation,” said John Rodgerson, the company’s chief executive officer.