08/05/2019News
Auction planned as part of Avianca's recovery plan is suspended.
Swissport claims that the recovery plan is based on the transfer of slots, which is prohibited by law.
Judge Ricardo Negrão, of the 2nd Reserved Chamber of Business Law of the TJ/SP (Court of Justice of São Paulo), granted a stay of execution to the decision that approved the recovery plan approved by the creditors' meeting and granted judicial reorganization to Avianca. As a result, the auction scheduled for this Tuesday, the 7th, was suspended.
The request was made by Swissport Brasil, which claims to be an unsecured creditor for an amount exceeding R$ 17 million and that the plan is based on the transfer of slots, which is prohibited by law.
Upon reviewing the request, the rapporteur concluded that there is "relevance" in the grounds for appeal, as they raise the issue of the impossibility of approving the judicial reorganization plan based on provisions that violate the principle of legality.
"One cannot ignore the worrying statement from ANAC (...) through which it shows itself to be against the negotiations related to the sale of slots as if they were part of the company's assets, since such a provision negatively affects the competence of the Federal Authority."
Thus, the court granted the suspensive effect to prevent the effects of the homologation decision, as well as to suspend the auction until the appeal is judged, "without prejudice to the Collegiate analysis which will deliberate, among other things, on the possibility of eventual conversion of the judicial reorganization into bankruptcy." Negrão also determines that Avianca must demonstrate strict compliance with the legal requirements in defending the approved and homologated reorganization plan.
Case Number: 2095938-27.2019.8.26.0000
08/05/2019
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