Dias Toffoli allows Petrobras to continue selling its assets

Judge Dias Toffoli maintains the decision until February 27, when the entire Supreme Court will hear the case for the sale of Petrobras assets

The president of Brazil's Supreme Court has restored a presidential decree regulating how Brazilian state-owned Petrobras (PETR4.SA) can carry out an ambitious divestment program aimed at reducing the company's significant debt.  Judge Dias Toffoli's decision, signed on Friday, annulled an injunction issued by a colleague last month. Toffoli's decision is expected to last until Feb. 27, when the entire Supreme Court will hear the case.

The December injunction, following a lawsuit filed by the opposition Workers' Party, raised questions about the ability of Petrobras, as the company is known, to carry out the divestments as planned.

Petrobras is planning a $26,9 billion asset sale over the next five years, according to a strategic outlook released late last year. These include subsidiaries, oil fields and some refineries.