Transbrasil reportedly has had its assets frozen by the Brazilian government, a move that could finally spell the end for the struggling carrier.

According to reports by the Folha de Sao Paulo newspaper, the Brazilian government has decided to freeze the assets of Transbrasil to try and recoup the 342 million real ($141 million) it is owed.

The airline, which could not be reached for comment, ceased operations in December with debts of almost $400 million. Its air transport licence has been revoked and a rescue plan launched by a local air-taxi operator and a group of foreign investors collapsed this week after a Sao Paulo court ruled it to be illegal.

With that rescue plan in tatters and its assets frozen, Transbrasil appears now to have no alternative to bankruptcy.

Source: Flight Daily News