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BUZZ-US shares of Azul rise after deal with bondholders

Reuters
Oct 28, 2024
BUZZ-US shares of Azul rise after deal with bondholders

** Shares of Brazilian airline Azul AZUL.N up 10.7% at $3.1 premarket

** Co reaches a deal with bondholders to obtain additional financing as part of restructuring that it expects will ease market concerns about its debt load

** Azul will receive $150 mln this week and another $250 mln by year-end, filing says

** Deal may include another $100 mln in financing and a potential debt-for-equity swap of as much as $800 mln if AZUL manages to further improve its cash flow, reducing costs by around $100 mln per year

** The fresh capital was a condition of Azul's recent deal with lessors to scrap nearly $550 mln in obligations in exchange for an equity stake of around 20% of the firm

** Azul has managed to avoid the fate of a number of Latin American carriers that filed for bankruptcy after the COVID-19 pandemic

** As of last close, stock down 71% YTD

(Reporting by Sukriti Gupta in Bengaluru)

((Sukriti.Gupta@thomsonreuters.com;))

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