São Paulo State Prosecutor’s Office calls for bankruptcy decree of Itapemirim Airline

RIO DE JANEIRO, BRAZIL – The São Paulo State Prosecutor’s Office has requested that the Court block the assets of Sidnei Piva and declare the bankruptcy of Viação Itapemirim and ITA Transportes Aéreos.

The opinion, signed by the 5th Bankruptcy Prosecutor, Nilton Belli Filho, was submitted in the airline’s judicial reorganization proceeding. The airline, part of the Itapemirim group, which became famous for its interstate bus service, was launched in May last year, when its bus service was threatened by bankruptcy.

The Prosecutor points out attempts to decapitalize the bus company to use its resources to support the airline, which suspended its activities in December and left over 40,000 passengers with tickets purchased unable to travel.

During the imbroglio, Piva was removed from the board of the Itapemirim group, under the suspicion of diverting funds from creditors to cover expenses of other companies.

Another point raised in the claim is the suspension of ITA Transportes Aéreos’ operations, which according to the Prosecutor has the potential to impact the entire Itapemirim group and justifies the inclusion of the airline company in the same reorganization plan, given that the two companies share the same director.

The airline’s judicial reorganization process began in 2016 and, although it has been approved by the courts, it has been systematically breached by the company. During the imbroglio, control of the company passed from the Cola family, founder of the conglomerate, to Sidnei Piva. The Prosecutor’s Office asks for his immediate removal from the group’s presidency.

“Sidnei Piva would have fostered, even tacitly to the provisions of the reorganization plan, the activity of air transport, including the taking of loans with apparent fraud, with the establishment of legal entities abroad through the transfer of large sums, which, in theory, may result in currency evasion and other illegalities,” reads an excerpt of the opinion.

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