Shares of airline Azul plunged on Wednesday after the Brazilian company filed for Chapter 11 bankruptcy protection in the United States, despite months of efforts to restructure mostly pandemic-era debt, Reuters reported. The filing, which may scupper a potential merger with peer Gol, makes the carrier the latest in a series of Latin American airlines to file for bankruptcy in the aftermath of the depression the industry suffered in the initial months of COVID-19. U.S-listed shares of Azul fell some 40% in premarket trade, making a 70% decrease in its stock year to date.

Brazilian renewable energy company Rio Alto Energias Renovaveis SA is working with financial advisory firm Laplace Finanças and law firm Felsberg Advogados as debt restructuring advisers, Bloomberg News reported. Laplace and Felsberg have been helping Rio Alto negotiate with its creditors to reach an agreement as the company seeks to avoid filing for bankruptcy protection.

Brazilian airline Gol said on Tuesday its restructuring plan under Chapter 11 bankruptcy proceedings has been approved by a U.S. court, Reuters reported. The Brazilian carrier, which has been in bankruptcy proceedings since early 2024, told Reuters it expects to exit chapter 11 in June. Read more.

Brazil's government is not considering providing specific aid for Azul as the airline faces financial hurdles, but money from a local fund will soon be available for carriers, tourism minister Celso Sabino said on Monday, Reuters reported. "The Brazilian government does not intent to grant any kind of benefit to a particular company. The government thinks of the sector as a whole," Sabino said on the sidelines of an event in Rio de Janeiro.

The surge in popularity of U.S. dollar-backed stablecoins as a way of transferring money abroad is increasing the volatility of Brazilian capital flows, Brazil's central bank deputy governor said on Tuesday, Reuters reported. Brazilians' crypto asset usage has surged over the past two to three years, with around 90% of the flow linked to stablecoins - digital money pegged to leading currencies like the U.S. dollar - its central bank estimates.

Brazil's central bank raised interest rates by 50 basis points on Wednesday in a sixth straight hike that pushed borrowing costs to their highest in nearly 20 years, and left future steps open amid global uncertainties and sticky domestic inflation, Reuters reported. The bank's monetary policy committee, known as Copom, raised the Selic to 14.75% in a unanimous decision.

Brazilian airline Gol on Thursday announced that it has struck a new deal with key creditors, paving the way for the company to emerge from Chapter 11 bankruptcy protection likely by the end of June, Reuters reported. The agreement, which involves investors holding a portion of the airline's senior secured notes due in 2026, will provide $125 million in financing, according to a regulatory filing. With the new development, Gol has now secured at least $1.375 billion in financing to exit bankruptcy, the filing showed.

Brazilian Finance Minister Fernando Haddad said on Monday that he sees greater momentum for ratification of the long-delayed trade agreement between the South American bloc Mercosur and the European Union as geopolitical and trade tensions grow, Reuters reported. Following 25 years of talks, the free trade deal, which had divided European nations, was finalized in December. But it still requires legalization, translation, and approval by member nations from both blocs.

An investment bank has approached Azul SA creditors to drum up fresh capital to backstop an equity raise as part of the Brazilian airline’s debt restructuring plan, Bloomberg Law reported. PJT Partners has been calling the air carrier’s existing bondholders to discuss options. One possible structure, laid out in regulatory filing earlier this month, involves raising up to 900 million reais in debt instruments to be guaranteed by some credit and debit card receivables generated by its passenger airline business.