• Categories
  • Archives

Brazilian Judge Prolongs Bankrupt Varig’s Agony

Luiz Roberto Ayoub, the judge at a Business Court (8ª Vara Empresarial do Tribunal de Justiça) in Rio de Janeiro, Brazil, was supposed to rule today, June 9, on yesterday’s auction of the Brazilian carrier, Varig.

Ayoub should decide whether or not to accept the only bid for Varig, which was made by NV Participações, representing a Varig worker organization (Trabalhadores do Grupo Varig) (TGV).

The bid by TGV consisted of an offer to pay 285 million reais in cash, an additional 500 million reais in debentures and another 225 million reais in receivable credits, totaling around 1 billion dollars (slightly less than US$ 500).

The preestablished asking prices were US$ 860 million for Varig, and an additional US$ 700 million for the company’s domestic flights.

The judge, however, in another unexpected maneuver, has postponed his decision for next week. Apparently worried about being blamed for the end of a company that in times past was the pride of Brazil,

Ayoub is even ready to consider new offers to buy Varig if the TGV bid reveals to be unviable.

The TGV people got until Monday, June 12, to make it clear how they will be able to raise the money to comply with their bid. In case they seem unable to fulfill their part on the deal, Varig would be declared bankrupt.

Tuesday, June 13, will be the bankrupt company’s D Day. It will be the deadline given by a court of New York for Varig to pay its arrears to airplane leasing companies. In case this doesn’t happen, Varig may have airplanes apprehended.


  • Show Comments (2)

  • Guest

    John Chalmers
    Brasil had the airline they deserve.Simply a corrupt organisation to syphon the Brazilians peoples money thru BR and Infaraero into their overstaffed and overpaid airline workers(Shirkers) pockets at all levels

  • Guest

    I work with a guy whose company had some of its aircraft reposessed.They just walk out, check the tires, flight controls and gas,and go! If you think re-poing cars is exiting, try commercial aircraft.

Your email address will not be published.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.


You May Also Like

Brazil Starts Push to End Hoof and Mouth Disease in Three Years

Brazil’s national vaccination campaign against hoof and mouth disease got underway yesterday, September 1st, ...

Obscene Was Her Middle Name

Cassandra Rios and another woman writer by the name of Adelaide Carraro became famous ...

Brazil to Create 2000 Direct Jobs Building Submarines

The Navy of Brazil is celebrating the signing of a cooperation agreement between Brazil ...

Brazilians Accused of Destroying Indian Land in Paraguay

A company from Brazil, which according to Survival International – an organization that defends ...

Petrobras Surplus 600% Bigger than Last Year’s

Together the greater supply of Brazilian oil for export, the reduction of spread (the ...

Brazil Turns a Page. Now It’s the IMF that Owes Her Money

For the first time ever, this Monday, Brazil turned from debtor into a creditor ...

Brazil Discusses the Rough Way to Sustainable Development

“When conflicts don’t arise, it’s because the government’s policy had no effect. For this ...

Brazil Defends GMOs at UN and Bars Tougher Rules on Biosafety

Key United Nations negotiations on the safe trade of genetically modified (GM) crops and ...

Brazil Gets High Marks for AIDS Control Among Drug Users

AIDS control among users of injectable drugs is one of the aspects that distinguishes ...

Brazil and the World Need a Global Social Marshall Plan

Recent events in Brazil lead us to question what constitutes the difference between the ...