• Categories
  • Archives

Brazil’s Varig Repays Part of Debt in US Court and Delays Bankruptcy

Brazilian bankruptcy-bound airline Varig informs that, pursuant to a ruling by the Court of New York, it deposited US$ 6.7 million, Wednesday, December 28, in partial payment of debts owed to US firms from which it leases some of its fleet.

The settlement was reached on December 21 at a hearing attended by the president of the company, Marcelo Bottini, and representatives of the leasing firms. The sum will be divided among the 15 airplane lessors.

Judge Robert Drain, of the Court of New York, decided to extend the legal protections on Varig’s planes until January 13. The grounds for the judge’s decision were that the Brazilian company had complied with Brazilian court rulings to present a Recovery Plan approved by its creditors, had reactivated aircraft that were out of service for maintenance, and had submitted a schedule for repaying its debts to the leasing firms.

According to the company’s press office, Varig plans to return to the Court of New York on January 13 with proof of the payments already made to the leasing firms. The company owes the leasing firms a total of US$ 44 million and expects to make good on US$ 19.7 million by the time of the next hearing in New York.

On January 8, Varig expects to present its recovery plan, backed by its creditors, to the 8th Business Court of Rio de Janeiro.

It was announced earlier this week that Varig will end on January 14, 2006, services to Japan via Los Angeles, as a measure to cut expenses. The air carrier has been placed under bankruptcy protection since June.

On January 14, the airline will end its service from São Paulo to Tokyo via Los Angeles as well as cut the number of employees at its Japanese offices and close other offices in Asia.

The company will keep its São Paulo to Los Angeles route, which is still profitable, but will trim the number of its employees in the Tokyo office and close other offices in Asia.

ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Cinema: Lula on Screen in Oxford

It looks as if I won’t be able to make the first of the ...

Brazil Revamping Tourism Infrastructure in Preparation for 2014 World Cup

In preparation for the World Cup in 2014 and in an effort to strengthening ...

Brazil skies, sea and memory

People Are Like Music and Brazil Is My Theme

I have stayed almost 11 months in Brazil fulfilling my ultimate dream.  I have ...

Brazil Burns Native Vegetation for Firewood Accelerating Desertification

Brazil’s Ministry of Environment (MMA) launched the primer, "Learning about the PAN-Brasil: the National ...

From Flip-Flops to Design Clothes Brazilchic Sells Brazil on the Net

Many Brazilian brands are already making their way into U.S. stores, as São Paulo ...

Brazil Decries UN’s ‘Democracy Deficit’

The Security Council suffers from a “democracy deficit” and needs to include more permanent ...

Brazilian Lock Maker Knocks on Arab Doors

Brazil's lock and doorknob manufacturer Lockwell, which owns a factory in the capital of ...

Brazil: Journalist Wants Dictatorship Abuses Reinvestigated

Brazilian journalist Rose Nogueira, president of the group Tortura Nunca Mais (Torture Never Again). ...

Only 35% of Brazilians Rate Lula’s Administration as Good

The approval rating of President Luiz Inácio Lula da Silva’s personal performance fell four ...

Brazil Needs to Invest US$ 88 Billion in Energy Sector to Keep Growing

The Brazilian Ten-Year Plan (2007/2017) announced this week by the EPE (Energy Research Company), ...