RIO DE JANEIRO (Reuters) -Brazilian airline Azul ( AZULQ ) reached a settlement with unsecured creditors, advancing its financial restructuring after having filed for Chapter 11 protection in May, the firm said on Saturday.

The settlement represents a significant step in Azul's ( AZULQ ) Chapter 11 process, as it provides a clear path forward for the firm, it said in a statement.

Azul ( AZULQ ) was the latest Latin American carrier to file for bankruptcy, joining a list of airlines in the region that have been severely impacted by the COVID-19 pandemic.

The firm has previously said it expects to exit Chapter 11 proceedings early next year.