World News

Brazilian airline Azul hires financial advisor for debt talks

SAO PAULO (Reuters) – Brazilian airline Azul SA <AZUL.N> said on Wednesday it has hired restructuring firm Galeazzi & Associados to work with the carrier “during this period of crisis.”

Galeazzi previously worked with Azul’s cargo subsidiary before the coronavirus pandemic hammered the air travel sector, Azul said in a statement, adding that the contract had been expanded to a wider advisory role.

Galeazzi did not immediately respond to a request for comment.

Brazilian newspaper O Estado de S. Paulo reported earlier on Wednesday that Galeazzi will help Azul to renegotiate around 15 billion reais ($2.9 billion) in debt to creditors and suppliers.

On Tuesday, Azul said its controlling shareholder, David Neeleman, who also founded JetBlue Airways <JBLU.O>, sold most of his preferred shares to pay margin calls on personal loans with the shares as collateral.

(Reporting by Tatiana Bautzer; Editing by Alexander Smith and Paul Simao)