Overshadowed by the fallout of the BES debacle, Portugal’s Tivoli Hotels & Resorts chain has announced that it has sought special government-backed PER funding to keep it afloat until the way is clear for sale to interested investors.
The Tivoli chain and that of Marinotéis “belongs to Rioforte” – the Espírito Santo holding company that famously collapsed along with the rest of the empire, owing almost €900 million to Portugal Telecom.
According to the Financial Times, the chain has a potential value of €300 million – but while money-men sift through the massive financial mess, the Tivoli’s 14 hotels in both Portugal and Brazil need to fund day-to-day running expenses, and meet all their debts.
In a statement put out by the chain’s executive president Alexandre Solleiro, the organisation confirmed that a “line of finance” was in the pipeline and that the “negotiations underway” should not in any way affect the normal functioning of the group’s outlets.
Making a similar announcement on online tourism site Publituris, Solleiro explained that PER funding will give the Tivoli group the conditions it needs to operate normally and overcome all “the short-term constraints” that the Rioforte collapse has created.
“I reinforce my conviction that negotiations will be concluded positively,” he stressed, allowing “the growth and competitivity of the Tivoli Group in Portugal.”
As Público explains, PER is a special process designed to save companies that are economically viable but nonetheless at risk.
By NATASHA DONN