Brazil airline Azul hires adviser to restructure debt: report

FILE PHOTO: Airplanes of Brazilian airline Azul are seen at the Pampulha airport after the company suspended several flights, amid a coronavirus disease (COVID-19) outbreak, in Belo Horizonte, Brazil, April 2, 2020. REUTERS/Washington Alves

SAO PAULO (Reuters) – Brazilian airline Azul SA (AZUL.N) has hired restructuring firm Galeazzi & Associados to renegotiate its financial and suppliers’ debt, Brazilian newspaper O Estado de S. Paulo reported on Wednesday.

Azul expects to renegotiate around 15 billion reais ($2.9 billion) but not within an in-court reorganization, the newspaper reported. Azul and Galeazzi did not immediately reply to Reuters requests for comment.

On Tuesday, Azul said its controlling shareholder David Neeleman, founder of Jet Blue, sold most of his preferred stake in the company to pay margin calls on personal loans, that had Azul shares as collateral.

Editing by Alexander Smith