Portuguese Government Rescues TAP Airlines, Causing Short-term Losses for Azul

Neeleman's company will lose the right to convert bonds acquired in 2016 into equity, but chances of receiving the full debt increase.

RIO DE JANEIRO, BRAZIL - The Portuguese government's €1.2 billion (R$7.2 billion) aid package to TAP airlines will have an impact on Azul here in Brazil. The Brazilian airline, founded by David Neeleman, indirectly holds a six percent stake in the Portuguese company since the second quarter of 2019, and is also a TAP creditor, after the acquisition four years ago of a US$90 million (R$482 million) convertible bond maturing in 2026. This debt would entitle the company to an equity participation . . .

To read the full NEWS and much more, Subscribe to our Premium Membership Plan. Already Subscribed?