01:55 PM EDT, 09/13/2024 (MT Newswires) -- Azul ( AZUL ) is close to finalizing a deal with lessors to restructure about $600 million in debt, offering them equity in the company, Reuters reported Friday, citing people familiar with the talks.

A deal, which could be signed within weeks, would give lessors around a 20% equity stake in Azul ( AZUL ), according to the people.

The Brazilian airline's shares have dropped over 40% since August amid concerns over potential bankruptcy, according to the report.

Sources said that momentum was building toward an "out-of-court restructuring," which may pave the way for additional bondholder financing.

Azul ( AZUL ) did not immediately respond to MT Newswires' request for comment.

Shares of Azul ( AZUL ) were up over 25% in recent Friday trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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