Brazil’s Azul Stock Extends Slump Amid Debt Negotiations

Published 2 September 2024, 12:17:20 [BFW]

By Leda Alvim

(Bloomberg) -- Shares in Azul SA slump as much as 18% in Sao Paulo on Monday, extending last week’s drop to reach the lowest value on record following news that the Brazilian airline is weighing options to address approaching debt obligations.

• The stock traded at 4.59 reais as of 12:23 p.m. in Sao Paulo; shares are down 41% over the past four sessions
  • NOTE: Azul Shares Slump as Airline Looks at Options to Rework Debt (4)
• On Friday, Lucror Analytics’ Josseline Jenssen downgraded its trade recommendation on the AZUBBZ curve to sell from hold, while revising its credit bias to negative from stable
  • The BRL’s depreciation, domestic and international capacity reductions, manufacturer delays and supply chain constraints ​have “significantly affected the company’s results”
  • Notes that those factors “seems to be weighing on the talks with creditors and undermining investors’ confidence, given the possibility that Azul will be forced to restructure its debt and follow in GOL’s footsteps by filing for Chapter 11”
• Also on Friday, Valor reported that Azul’s bondholders are working with financial adviser PJT Partners as creditors brace for a potential bankruptcy filing
  • NOTE: Azul Bondholders Hire Financial Adviser: Valor
• NOTE: Azul May Reach Deal With Lessors in a Month, CEO Tells Folha