Azul has successfully reached commercial agreements with lessors and OEMs that hold approximately 92% of the existing equity issuance obligations.
These agreements represent a significant part of a comprehensive plan designed to strengthen Azul's cash generation and improve its capital structure going forward.
Under these agreements, lessors and OEMs are agreeing to eliminate their pro-rata share of the current balance of the equity issuance obligations totalling approximately R$3 billion ($544,2 million), and in exchange will receive up to 100 million new preferred shares of Azul in a one-time issuance.
This negotiation is contingent on amendments to certain other obligations, including the raising of additional financing and is subject to finalising definitive binding documentation with lessors and OEMs.