Azul S.A. is Brazil's largest airline by number of flights and cities served, operating a fleet of 226 aircraft with over 16,000 crewmembers. Founded in 2008 by JetBlue founder David Neeleman and publicly traded on NYSE (ticker: AZUL) since 2017, the company filed for Chapter 11 protection on May 28, 2025 in New York Southern (Case No. 25-11176) after the COVID-19 pandemic severely impacted revenues while foreign exchange volatility amplified the burden of approximately $3.1 billion in funded debt. At filing, Azul's debt included $1.05 billion in first-lien secured notes, $785 million in second-lien notes, $273 million in lessor/OEM notes, and various local debentures and government-backed facilities. The Debtors obtained a massive $1.571 billion DIP facility with approximately $671 million in new money and a $900 million roll-up, bearing 15-16% PIK interest. Strategic investors United Airlines and American Airlines committed $200-300 million in new investment. The plan was confirmed on December 19, 2025 as a reorganization, eliminating over $2 billion in debt by converting first-lien claims to 97% of new equity and second-lien notes to 3%, with a rights offering of up to $950 million. Existing equity is retained but significantly diluted.