Commission accompanying privatization says there is “desperate … – publico

                 

                         
                     

                 

 
                         

President of the monitoring committee of the privatization of TAP, which is to be heard on Wednesday in Parliament, said that “there is a complete despair treasury” in TAP, defending the model chosen by the government to sell the group.

                     

                          For John Cantiga Esteves, privatization on the stock exchange would not be the best way, since TAP has negative equity that are around 500 million euros. “A company with negative equity capital does not have to put in bag,” he said at the hearing that is taking place in the commission of Economy and Public Works, following a PS of the application.

On the other hand, the economist, who was chosen by the executive present to chair the monitoring committee, explained that the scenario defended by PS, injection of capital by the state, also could not be chosen, since it is subject to Commission approval European, which requires that this type of operation is preceded by a thorough restructuring.

“Applications for public recapitalization are accompanied by a set of constraints. They are permitted with a heavy contract documents” with ” reduction of employment, unprofitable routes and fleet, “he said.

” There are numbers we must reflect. There is a full despair treasury. You walk through in desperation, to live every minute of the difficulties of the company from the point of view of cash, “said yet.

Last week, TAP announced its results for 2014, which, in business aviation, losses reached 46 million euros losses were justified essentially with four extraordinary factors:. the fall of tariffs, passenger transfer with costs, the charter of third aircraft and the increased burden on compensation for passengers . It remains to know the aggregate results of the group, including the losses of the loss-making maintenance unit in Brazil.

To Cantiga Esteves, “is most urgent capitalization” of TAP because “what may be concerned is the company’s survival. “And so, highlighted the fact that one of the criteria for choosing the winner is the capitalization of the company, which” reveals the urgent need is “fresh cash injection in the group.

As for the dissemination of information on the process, the chairman of the monitoring committee argued that this step could be detrimental to the process, placing the Government side to refusing to give in to the PS data and the studies that led to the decision to sell the group.

“It can harm the company and the process,” said Cantiga Esteves, ensuring that the committee has had access to all the necessary information.

The Government intends to complete the privatization of TAP by the end of the first half and is scheduled for May 15 delivery of binding purchase offers. The model chosen by the executive involves the sale, initially 66% of the group (61% with investors and 5% for workers). But the intention in the medium term, is that the state fully exit the capital.