06:50 AM EDT, 05/28/2025 (MT Newswires) -- Azul ( AZUL ) said Wednesday that it has entered restructuring support agreements with its financial stakeholders to implement a Chapter 11 bankruptcy reorganization in the US to reduce debt by $2.0 billion.

The Brazilian airline said the restructuring agreements were made with its bondholders, its largest aircraft lessor AerCap, and strategic partners United Airlines (UAL) and American Airlines (AAL), which may provide up to $300 million in equity investments.

The agreements include a commitment of about $1.6 billion in debtor-in-possession financing during the restructuring process and equity financing of up to $950 million upon emergence from bankruptcy.

Azul ( AZUL ) said it will continue flying and operating as normal during the process.

Shares of the company were down 40% in recent premarket activity.