Once nationalization was over, the Government approved a decree in the Council of Ministers declaring the public interest to inject up to 1,200 million euros in TAP.
The Government is thus left with the free way to transfer fresh money to the company to allow it to resume activity.
It should be recalled that the Supreme Administrative Court had already authorized the Government to proceed with the capital injection, provided that it was demonstrated that the delay in the injection would harm the public interest, which was invoked and approved in the meantime by decree.
The negotiation process on the future of TAP was marked by advances, setbacks and a lot of tension. An arm in the arm with the private shareholders in which Govenro even threatened to take over the airline.
With the urgency of a decision, negotiations have intensified in the last few days in an attempt to find a solution to save the airline.
It was already dawn when the last obstacle was overcome. The Brazilian company Azul, chaired by David Neeleman, ended up yielding to the Government’s demand.
The Executive wanted Azul to relinquish the right to convert a 90 million euro loan it made to TAP into the company’s capital.
The idea is to ensure that, in the future, the Brazilian company cannot claim part of the control of the restructured Portuguese carrier.
After confirming the agreement, Neeleman leaves TAP, which becomes mostly public, with the State holding more than 70 percent of the capital and Humberto Pedrosa, the other Portuguese private shareholder, close to 30 percent.
Future of TAP. José Gomes Ferreira explains negotiation with David Neeleman
The Government is preparing the nationalization decree of TAP, which will be approved this Thursday in the Council of Ministers.
This was not the “plan A” of António Costa’s executive, who tried to buy the shares of David Neeleman, the American businessman who holds 22.5% of the airline’s capital, to avoid nationalization.
But the negotiations failed: Neeleman asked for 55 million euros for the position, and the Government, which at the beginning was only willing to pay 40 million, managed to keep up with the amount demanded by the American entrepreneur.
Negotiation turnaround
It is known that Neelman accepted on Tuesday the 55 million euros offered by the State to sell his position, but at the last minute a new factor appeared in the equation. The American businessman had already lent, in 2016, 90 million to TAP through the Brazilian airline Azul, of which he is chairman of the board of directors.
So that in the future the Brazilian would not come to claim part of the control of the Portuguese carrier, the State wanted Azul to abdicate the right to convert that money into capital. A problem was created: Neeleman could not make that decision alone and he threw the possibility of an agreement to the ground.
The negotiations were thus concluded on Wednesday morning. However, until the time to vote on the nationalization decree, anything can happen.
Nationalize not to drop TAP
At this time, the Government is continuing with plan B: nationalize the national airline. SIC found that the nationalization covers Neeleman’s actions, but also Humberto Pedrosa’s.
That is, the State will hold at least 95% of the company’s capital and the private individuals will be removed from the shareholder structure.
“If TAP disappears an even bigger hole is created”
José Gomes Ferreira analyzed the various scenarios for the restructuring of the airline in SIC’s Jornal da Noite.
For José Gomes Ferreira, declaring TAP bankruptcy is not in the equation. He considers that “if the company disappears an even bigger black hole will be created”.
If TAP is nationalized, the State will hold at least 95% of the company’s capital and private individuals will be removed from the shareholder structure.
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