Public transportation company in Cachoeira do Sul files for bankruptcy protection.

Public transportation company in Cachoeira do Sul files for bankruptcy protection.

With an 85% drop in revenue since the beginning of the new coronavirus pandemic, Transporte Nossa Senhora das Graças (TNSG), from Cachoeira do Sul, has filed for judicial reorganization. The initiative aims at the administrative, operational and financial restructuring of the company, seeking the continuity of services. The debt amounts to R$ 3.6 million, totaling 157 creditors.

In a statement, the company justified the adoption of the measure: "The current scenario has caused incalculable losses to the company, especially due to the outdated tariff policy and the exemptions granted by governments without any financial compensation," the company explained.

With classes suspended in schools and universities, and many people unable to work or working from home, demand has plummeted. Since March, only 15% of passengers continue to use the carrier's services, of which 45% benefit from exemptions. "For any company, a financial blow of this magnitude is devastating," TNSG points out in the official document.

"Transporte Nossa Senhora das Graças is readjusting its structure to continue operating and providing services to the population of Cachoeira do Sul. The effort is to renew itself and become even stronger after the current crisis," assesses lawyer Fernando Campos, from the firm Medeiros, Santos & Caprara Advogados, responsible for conducting the judicial recovery process. The request was submitted on Thursday (16), at the Court of the District of Cachoeira do Sul.

By ALEXANDRE ECKERT/DIVULGAÇÃO/JC

Source: Jornal do Comércio