(AP) The Portuguese government has postponed the privatization of national airline TAP Air Portugal after the sole bidder failed to provide required financial guarantees.
The government said Thursday that Brazil-based Synergy Aerospace offered to pay 35 million ($46.5 million) for TAP, invest 316 million in the company and take on the flag carrier's estimated 1.2 billion debt.
Secretary of state for the treasury Maria Teresa Albuquerque said Synergy didn't produce the necessary bank guarantees, however.
She said the government still intends to sell TAP at a later date and after a re-evaluation of the privatization process.
The outcome was a setback for the government, which is selling off state companies as one of the conditions of last year's 78 billion bailout. The privatization revenue helps pay off public debt.