Portugal Expects to Send TAP Restructuring Plan to Brussels In November

A restructuring plan for Portugal’s flag carrier TAP will be sent to the European Commission in November, the secretary of state for the treasury said on Tuesday, which if approved will buy the airline time to repay a huge bailout loan, Reuters reported. TAP asked for state aid in April after the outbreak of the coronavirus forced it to suspend almost all of its 2,500 weekly flights. The European Commission approved a 1.2 billion euro rescue loan in June, contingent on the airline drawing up a restructuring plan within six months, or by the middle of December. If Brussels accepts the plan, TAP will have several years to repay the debt, otherwise it must be repaid immediately. In its 2021 draft budget, Portugal included a state guarantee for a new loan of 500 million euros to be granted to the company this year. Read more