RIO DE JANEIRO (Reuters) -Brazilian airline Azul reached a settlement with unsecured creditors, advancing its financial restructuring after having filed for Chapter 11 protection in May, the firm said on Saturday.

The settlement represents a significant step in Azul’s Chapter 11 process, as it provides a clear path forward for the firm, it said in a statement.

Azul was the latest Latin American carrier to file for bankruptcy, joining a list of airlines in the region that have been severely impacted by the COVID-19 pandemic.

The firm has previously said it expects to exit Chapter 11 proceedings early next year.

(Reporting by Fabio Teixeira)

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