Portugal Reaches Agreement ‘in Principle’ With TAP Shareholders
(Bloomberg) -- The Portuguese government said it reached an agreement “in principle” with TAP SGPS SA's private shareholders that can allow the airline to receive a planned rescue loan.
The government and TAP's private shareholders are currently discussing legal and technical details of that initial agreement, and the process may be completed in the next few hours, government Minister Mariana Vieira da Silva said after a cabinet meeting on Thursday.
If that agreement isn't completed, the cabinet can meet again “immediately” to approve a plan to nationalize the airline, Vieira da Silva said.
Like other carriers, TAP was forced to halt most of its flights due to coronavirus-related travel restrictions. The European Commission has already approved a 1.2 billion-euro ($1.3 billion) rescue loan to help the airline meet immediate liquidity needs. The rescue loan has several conditions that need to be approved by TAP's private shareholders before it can go ahead, Infrastructure Minister Pedro Nuno Santos said on June 10.
The Portuguese state already controls 50% of TAP. Airline entrepreneur David Neeleman and Portuguese investor Humberto Pedrosa jointly own another 45% through the Atlantic Gateway venture. The government has previously said it won't let the flag carrier collapse and won't rule out any instruments it can use to intervene.
©2020 Bloomberg L.P.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
