A rescue plan for Brazilian carrier Transbrasil has collapsed after a ruling by a São Paulo court.

Transbrasil was due to be sold to Dilson Prado da Fonseca, owner of a Brazilian air-taxi operator, and a group of unnamed foreign investors, believed to have included US companies Winthrop Investment Group and Dodson International (Flight International, 29 January - 4 February). Purchase of the 75% stake was ruled illegal, because it required permission from the heirs of the airline's founder, Omar Fontana, and federal and state treasury departments.

Da Fonseca's departure from the scene was followed by the appointment of Brazilian entrepreneur Michel Tuma Ness as president. But he resigned four days later over an employee wages dispute.

Transbrasil ceased operations in December with debts of $397 million. The carrier's air transport licence has now been revoked.

Source: Flight International