Five Companies Interested in Buying Campinas Airport

By Xiu Ying, Contributing Reporter

RIO DE JANEIRO, BRAZIL – The president of the concession Aeroportos Brasil, which manages the Viracopos International Airport in Campinas (SP), confirmed the interest of at least five companies in buying the terminal.

In an interview with the G1, Gustavo Müssnich said he believes in the sale of the concession even if its Judicial Reorganization is approved, which would solve the R$2.88 billion debt and prevent bankruptcy.

The first general meeting to vote on the plan takes place on May 16th.

Zurich Airport was the only one of the five that has effectively made a proposal to take control of Viracopos.

The other four, according to the concession’s president, are examining the financial situation of the terminal and the corresponding assets to file the purchase request, which must also be presented to creditors, in addition to shareholders, and considered within the scope of its judicial reorganization.

According to the G1, apart from Zurich Airport, the other four companies studying Viracopos before filing proposals are:

* Infrared Consortium, which manages the airports of Brasilia and Natal;
* the group Paris Airports;
* the state-owned company specializing in the operation of terminals in Spain Aena;
* and the CCR Group, responsible for the concession of Anhanguera (SP-330) and Bandeirantes (SP-348) highways.

According to Müssnich, the concession’s priority is to approve the plan in the first general meeting of creditors and to continue operating the terminal.

However, the president explained that the sale is not only an alternative should the judicial reorganization not be approved, but rather a possible option if the proposal to buy is interesting for the shareholder companies, irrespective of the judicial reorganization being approved.

“There’s a 50 percent chance of selling, I would say. Judicial reorganization remains our priority. We have to approve the plan, but even after the plan is approved, if the proposal is interesting to the shareholders, they will sell it.

I believe the sale is very possible. But now who runs the airport is us and we need to approve the judicial reorganization,” he explained.

In addition, the concession is tied to an injunction that suspended the forfeiture process opened by the National Civil Aviation Agency in February 2018, in order not to lose the concession.

“Therefore (debts and foreclosure risk) we need to solve the problem with a judicial reorganization or possibly the sale. The only thing we can not do is allow an airport like this to file for bankruptcy,” Müssnich added.

The Inframérica Consortium and the CCR Group have informed, in an official note, that they will not speak on the matter. Aena and Zurich Airport did not reply to questions, and reporters were unable to contact Paris Airports.

In January, the federal government published a notice in the Federal Official Gazette for companies to express interest and to carry out feasibility studies for the new airport tender.

According to the Executive, the Expression of Interest Procedure (PMI) is a “plan B” should the terminal not find a solution for the debt and need to renew the concession. The airport is experiencing a crisis that worsened in July 2017.

At the time, Aeroportos Brasil announced the return of the concession to the government.

However, the measure was blocked under regulations of law 13488, which provides for bidding rules throughout Brazil. Legislation needs a decree to be regulated, which has not yet happened.

Viracopos’ debts are divided into debts with banks – Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and four other private institutions – as well as suppliers, including companies responsible for services directly linked to the airport operation, and fixed and variable grants in 2017 and 2018, R$190 million each, that the concession was required to pay to Anac – the 2019 installment is due in July.

Left with no other choice, the concession filed the request for judicial reorganization in May at the 8th Civil Court of Justice of Campinas. Viracopos was the first airport in Brazil to file for reorganization. The plan to prevent bankruptcy entered the courts in July.

Infraero holds 49 percent of Viracopos’ shares. The other 51 percent are divided between UTC Participações (48.12 percent), Triunfo Participações (48.12 percent) and Egis (3.76 percent), which form the concession.

Triunfo and UTC are under investigation by Operation Lava Jato.