Brazilian airline Azul has filed for Chapter 11 bankruptcy protection in the United States, according to a securities filing on Wednesday.

This comes after months of trying to restructure debt accumulated mainly during the pandemic, according to Reuters.

The filing could jeopardize a potential merger with rival Gol and makes Azul the latest Latin American carrier to seek bankruptcy protection following the severe downturn the industry experienced in the early months of COVID-19.

The deal includes $1.6 billion in financing during the process, the elimination of over $2 billion in debt, and an additional commitment of up to $950 million in equity financing upon emergence, the Brazilian carrier said.

“We had too much debt on the balance sheet that principally came from COVID. We now have an opportunity to clean it all up,” Chief Executive John Rodgerson told Reuters in an interview.

Azul has reached agreements with key financial stakeholders—existing bondholders, aircraft lessor AerCap, and strategic partners United Airlines and American Airlines—to support its restructuring.