we need to focus on this. This judge sees the light.. need to hope this creates precedence somehow.
The key points are:
* "but one can not neglect its performance in an extremely competitive market, which imposes greater freedom in the exercise of its authority, and hence the Constitution itself Federal to exclude the use of general administrative rules. "
* "leaving it possible to dispose of assets within a minimum and formal competitive procedure"
* "Petrobrás affirmed the legality of the proceeding and that even the Court of Audit of the Union (TCU) had authorized its execution, in addition to complying with the simplified rules applied to it by virtue of a decree of the Presidency of the Republic."
* "The ANP, called to appear in the case, claimed that it was not a legitimate party to the complaint and upheld the legality of the entire proceeding."
My take: there are multiple laws all balancing across each other. Bottom line - petrobras is still fighting hard because it knows that it acted WITHIN the law. it provided a formal COMPETITIVE procedure.. however not a PUBLIC procedure. The judge is ruling here that given the competitive market it has greater freedom - hence why the constitution laws were put in place for SIMPLIFIED bidding.
NO ONE wants Petrobras to give assets away on the cheap, and given this took 12 months - I DONT THINK THEY DID.
We have LIGHT given the above ruling.. but we aren't home yet.
Authors of the popular action intended to suspend the sale of Companhia Petroquímica de Pernambuco (Petroquímica Suape) and Companhia Integrada Têxtil de Pernambuco (Citepe)
Federal Judge Paulo Roberto de Oliveira Lima, a member of the Federal Regional Court of the 5th Region - TRF5, yesterday suspended (22/2) a grievance filed by Petróleo Brasileiro SA (Petrobras), in order to revoke early protection In the case of the Popular Action filed by João Carlos do Nascimento Silva and Fernando Borges da Silva, who intended to suspend the sale of Companhia Petroquímica de Pernambuco (Petroquímica Suape) and Companhia Integrada Têxtil de Pernambuco (Citepe).
"PETROBRÁS, a mixed-capital company, is one of the examples of state-owned companies that exploit economic activity. It is true that, as a member of the indirect administration, it is attached to the principles governing public administration, but one can not neglect its performance in an extremely competitive market, which imposes greater freedom in the exercise of its authority, and hence the Constitution itself Federal to exclude the use of general administrative rules. It is in this context that the constitutionality of the simplified bidding procedure established by Decree No. 2,745 / 98, which regulated the then current articles 67 and 68, of Law 9,478 / 97 - Petroleum Law (now revoked by the new State Law, no. 13303/2016), leaving it possible to dispose of assets within a minimum and formal competitive procedure, as it had alleged PETROBRÁS in its previous manifestation and, in principle, happens in the case of the sale that is taken care of, "said the federal debtor rapporteur Paulo Roberto de Oliveira Lima.
UNDERSTAND THE CASE - João Carlos do Nascimento Silva and Fernando Borges da Silva filed a lawsuit against Petrobrás S / A and the National Petroleum Agency (ANP), seeking the annulment of the sale of Companhia Petroquímica de Pernambuco (Petroquímica Suape) and Companhia Integrada Têxtil de Pernambuco (Citepe).
The authors alleged that Petrobras would be promoting the divestiture without observing the bidding rules and that there would be damage to the company, due to the volume of resources spent on those two assets and those that it would receive in the sale.
In addition, the authors have alleged a risk of irreparable damage, because if the sale is consummated, it may not be undone, due to the indemnity that the company could be forced to pay to third parties in good faith to buy those goods. They asked the court of the 2nd Federal Court of Sergipe to grant an injunction suspending the sale of those assets.
Petrobrás affirmed the legality of the proceeding and that even the Court of Audit of the Union (TCU) had authorized its execution, in addition to complying with the simplified rules applied to it by virtue of a decree of the Presidency of the Republic.
The ANP, called to appear in the case, claimed that it was not a legitimate party to the complaint and upheld the legality of the entire proceeding.
The court of first instance understood that the requirements for granting the required urgency protection would be present, because in the case of goods belonging to the Indirect Public Administration, it would be necessary to observe the principles of article 37 of the Federal Constitution. In this view, it considered that the procedure adopted by Petrobrás, even if based on a regulatory decree, would not comply with those constitutional directives, especially those concerning legality, publicity and efficiency.
Petrobras filed a grievance, with the purpose of reversing the decision of the court of origin. The process came to TRF5. The decision handed down by the rapporteur, yesterday, will also continue for the opportune assessment of the panel of the 2nd Panel of the Court.
Process Nº: 0801552-92.2017.4.05.0000 - Infringement of Instrument
KAR Price at posting:
$1.66 Sentiment: Buy Disclosure: Held
(20min delay)