Court Grants Azul’s $650 Million Creditor-Backed Rights Offering

Brazil’s Azul SA has secured court approval for a financing plan backed by bondholders, who are set to become the airline’s major shareholders after the restructuring.

“It’s a cornerstone to the case moving forward,” Judge Sean H. Lane said at the hearing on Tuesday in New York. He also approved Azul’s disclosure statement at the hearing, which laid out creditors’ claims and interests, paving the way for the company to seek confirmation of its Chapter 11 plan.

The $650 million rights offering will be open to first-lien and second-lien bondholders, with some holders agreeing to fully backstop the plan while ...