Court accepts ACP’s injunction to stop state injection into TAP

  • ECO News
  • 23 June 2020

The Supreme Administrative Court has accepted the injunction of the Porto Trade Association to suspend the capital injection into TAP.

The Supreme Administrative Court accepted the injunction presented last Friday by the Porto Trade Association to suspend the State loan to TAP. The news was advanced by Expresso and confirmed by ECO. This way, the State is inhibited from injecting money into the Portuguese airline, in an amount that can go up to 1.2 billion euros, until there is a court decision on this action.

“Justice is on its way,” Nuno Botelho, president of the ACP, said to ECO, without making any further statement on the matter.

According to the newspaper, citing the order of the court decision, the government will be cited with the “prohibition of execution of the administrative act concerning the injection of up to 1.2 billion euros in TAP.”

In addition, the Portuguese government will also be notified to attach to the case several documents “so far not public”, including the Direct Sale Agreement, the Strategic Commitments Agreement and TAP’s Economic and Financial Stability Agreement.

Documents will also be requested regarding the reversal of the privatisation and repurchase of the airline in 2017, namely the “Share Purchase Agreement, the Strategic Commitments and Shareholders Agreement, the Revocation Agreement regarding the economic and financial stability of TAP and the Agreement for the Adaptation and Monitoring of TAP Group’s Liabilities,” adds the Expresso newspaper.