Group Who Bought Bankrupt Brazil’s Varig Can’t Raise the Money to Pay for It

Brazzil Magazine covers

NV Participações, an investment firm representing Varig employees, (TGV) admitted, yesterday, for the first time that they might not have  by Friday, the deadline, the mandatory deposit of US$ 75 million in order to officially take over operation of the Brazil’s troubled carrier, Varig.

Meanwhile, the president of the country’s civil aviation agency (Agência Nacional de Aviação Civil) (ANAC), Milton Zuanazzi, says that other domestic airlines, Gol and TAM, are willing to endorse Varig tickets when Varig passengers are unable to embark because of cancelled Varig flights.

He adds that other domestic carriers may be called on to also endorse Varig tickets.

"Everything is being done to keep Varig flying," says Zuanazzi, "until NV Participações makes the mandatory deposit and takes over operations, putting its own contingency plan in place.

"We have an emergency plan to ensure the company is able to continue operating which includes understandings with foreign carriers."

TGV’s coordinator, Márcio Marsillac, blamed the government and the judge’s delay in approving the employees offer for his difficulties in raising the money.

Talking to a group of Varig workers he said, "Nobody is 100% sure that the financial resources will be presented on Friday. If our negotiations don’t pan out then we will not have the money to make the necessary deposit."

The ANAC announced that Varig cancelled yesterday, June 21, 83 national flights with 3,018 passenger plus 39 international trips leaving 1,994 passengers stranded.

Meanwhile, Infraero, the company in charge of managing Brazilian airports informed that the total of cancelled flights were 180, being 154 of them domestic and 26 international. Both agencies belong to the federal government.

Bzz, ABr

Tags:

You May Also Like

Brazzil Magazine covers

Brazil’s Birth Rate Has Stabilized at 2.1 Children per Woman

Brazil’s birth rate began falling in the mid-1960s, dropped steadily for over two decades ...

Brazzil Magazine covers

Brazil: The Poor Have Much to Gain from Protecting Endangered Species

Saving endangered species like pandas, gorillas and tigers helps reduce poverty and improve the ...

Brazzil Magazine covers

Brazilian Militia’s Boss Executed with Over 60 Shots in Rio

A Brazilian police officer believed to be one of the bosses of Rio de ...

Brazzil Magazine covers

WTO Ruling Brings Brazilian Poultry Back to European Tables

Brazil’s Ministry of Agriculture, Livestock, and Supply informed that the decision announced Monday, September ...

Brazzil Magazine covers

Despite Killings and Intimidation Brazilian Indians Get More Land

On October 31st, the reports of the technical group in charge of reviewing the ...

Brazzil Magazine covers

RAPIDINHAS

"I Want to Hold Your Hand" was the track that amused me the most. ...