TAP injects €980 million recapitalisation of state money

Portugal’s airline TAP has announced a cash injection operation of €980 million of State money into the business.

The injection will be done in tranches – the first of €294 million was made on Tuesday (28 December), with two further tranches of €343 million each to be paid on December 2023 and December 2024.
In a communiqué to the market, “Transportes Aéreos Portugueses (TAP SA) informs that “following the decision of the European Commission dated 21 December, 2021 which approved the TAP Group Restructuring Plan and the granting of (financial) support for restructuring (the company) under the terms of which the (cash) grant is foreseen by the end of the 2022 financial year with a tranche of the aforementioned support approved by a decision in writing taken by the sole TAP shareholder”, for a reduction of TAP’s share capital by €904.3 million to partially cover losses.
“This will be followed by an increase in its share capital from zero euros to €980 million wholly subscribed by the Portuguese Republic through the Directorate-General of the Treasury and Finances to be undertaken with fresh cash injections”.
“The injection will be done via tranches with the first tranche of €294 million being paid now (Tuesday 27 December).
“This will be followed by a second tranche of €343 million which will be paid on 20 December 2023, and a third tranche of €343 million to be paid on 20 December 2024.
TAP will remain as the sole direct beneficiary of the Portuguese Republic via the Directorate-General of the Treasury and Finances.