Brazilian airline Voepass seeks to reorganize debts after airplane crash

Privately held Brazilian airline Voepass Linhas Aéreas filed for preparatory creditors protection on Monday, a legal measure that could potentially lead to bankruptcy protection proceedings. One of the company's planes crashed near São Paulo in August, killing all 62 people on board. In a press release on Monday, Voepass said that its finances have been impacted by the crash as well as by industry setbacks. "In mid-2024, Voepass had an extensive network and financial health conducive to continuing its planned expansion, which was disrupted by the tragic accident of flight 2283 last August," the company said. Latin American airlines have faced numerous challenges since the COVID-19 pandemic, forcing many of them to restructure their debts. Voepass said in the statement that the request for preparatory protection aims to organize both the company's debts and cash flow. The airline also noted that the measure would not affect the compensation processes for the accident, nor would it impact current routes, ticket sales or reservations.<br/>