Willkie Farr & Gallagher LLP
02/26/2026 | News release | Distributed by Public on 02/26/2026 15:59
Willkie Represents Unsecured Creditors’ Committee in Azul S.A.’s Successful Chapter 11 Restructuring
Willkie Represents Unsecured Creditors' Committee in Azul S.A.'s Successful Chapter 11 Restructuring
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February 26, 2026
Willkie served as counsel to the Official Committee of Unsecured Creditors in connection with Azul S.A.'s chapter 11 restructuring in the United States Bankruptcy Court for the Southern District of New York. Judge Sean H. Lane confirmed Azul's reorganization plan on December 19, 2025, and Azul emerged from bankruptcy on February 20, 2026.
Azul's plan of reorganization, built around three separate restructuring support agreements and a settlement with the Committee, discussed below, significantly deleveraged the company, enhanced liquidity and operations, and preserved vendor relationships as well as over 15,000 Azul crewmember jobs.
Notably, following months of hard-fought negotiations, the Committee reached a substantial settlement regarding the treatment of unsecured creditors under Azul's chapter 11 plan, paving the way for the confirmation of the plan and Azul's subsequent exit from chapter 11. The settlement represented a significant improvement over the treatment of unsecured creditors contemplated by Azul's prepetition restructuring support agreements, which would have provided unsecured creditors with no distributions. Pursuant to the settlement, the chapter 11 plan established a trust for the benefit of unsecured creditors. The trust was funded with valuable assets, including warrants and a contingent value right that could provide unsecured creditors with material distributions from the trust in the future. The settlement also provided some unsecured creditors with certain cash payments on account of their claims.
Azul is the largest airline in Brazil measured by cities served and direct domestic routes, with more than 800 daily flights to 137 destinations. With a fleet of approximately 200 aircraft, Azul operates a network of 250 direct routes. Azul's flight network also includes select international destinations.
The Willkie team was led by restructuring partners Brett Miller, Todd Goren and James Burbage and litigation partner Donald Burke with assistance from counsel Craig Damast, associates Joseph Brandt, Zachary Charlton, Marine Loison and Jessica Flynn, and law clerk Alexandra Hough.
Azul's plan of reorganization, built around three separate restructuring support agreements and a settlement with the Committee, discussed below, significantly deleveraged the company, enhanced liquidity and operations, and preserved vendor relationships as well as over 15,000 Azul crewmember jobs.
Notably, following months of hard-fought negotiations, the Committee reached a substantial settlement regarding the treatment of unsecured creditors under Azul's chapter 11 plan, paving the way for the confirmation of the plan and Azul's subsequent exit from chapter 11. The settlement represented a significant improvement over the treatment of unsecured creditors contemplated by Azul's prepetition restructuring support agreements, which would have provided unsecured creditors with no distributions. Pursuant to the settlement, the chapter 11 plan established a trust for the benefit of unsecured creditors. The trust was funded with valuable assets, including warrants and a contingent value right that could provide unsecured creditors with material distributions from the trust in the future. The settlement also provided some unsecured creditors with certain cash payments on account of their claims.
Azul is the largest airline in Brazil measured by cities served and direct domestic routes, with more than 800 daily flights to 137 destinations. With a fleet of approximately 200 aircraft, Azul operates a network of 250 direct routes. Azul's flight network also includes select international destinations.
The Willkie team was led by restructuring partners Brett Miller, Todd Goren and James Burbage and litigation partner Donald Burke with assistance from counsel Craig Damast, associates Joseph Brandt, Zachary Charlton, Marine Loison and Jessica Flynn, and law clerk Alexandra Hough.
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