Varig Buyers Can’t Produce Deposit Money on Time. They Get New Deadline.

Brazzil Magazine covers

Brazilian Varig Airline employees are planning a demonstration at company headquarters in Rio de Janeiro, today, to show their disposition to continue supporting the firm.

The Varig workers (Trabalhadores do Grupo Varig) (TGV), representative, NV Participações, an investment group, must make a mandatory deposit of US$ 75 million today if the June 8 Varig auction is to remain valid.

At the June 8 auction, only one bid was made; by NV Participações. The bid was to pay a total of US$  449 million for Varig Operations.

The US$ 75 million deposit should have been made at 11 am, Brazilian time, this Friday, May 23, but the deadline passed and no money was delivered.

Luiz Roberto Ayoub, the judge in charge of the Varig bankruptcy case didn’t take any action against TGV, however, and said that he would be flexible and wait that the money be presented until 4 pm today.

Unacceptable Practice

The director of the Department of Consumer Protection (DPDC), at the Ministry of Justice, Ricardo Morishita, reports that Varig, is not supposed to sell tickets for lines it is no longer operating. Morishita called the practice "unacceptable," and said it was "offensive to consumers."

"If a flight is cancelled the consumer has a right to fly on another airline. People have a right to be able to get home," he declared. As for the problem of mileage benefits, he said the problem was under examination.

ABr

Tags:

You May Also Like

Brazzil Magazine covers

Brazilian Troops Suffer Several Gang Attacks in Haiti

Brazilian troops will continue to carry out routine activities and fortify their positions in ...

Brazzil Magazine covers

Brazil’s Politicians Share the Spoils

Trying to explain Brazilian society to western Europeans and Americans can be frustrating. When ...

Brazzil Magazine covers

Immigrants Role: To Win Friends and Influence Congress

After debating for several weeks about the touchy subject of immigration reform, the United ...

Brazzil Magazine covers

Brazil’s Supreme Has Last Word on War of Amazon Indians vs Landowners

On August 27th, the Brazilian Supreme Court will decide a case that could have ...

Brazzil Magazine covers

Brazilian President Shows Up to Celebrate Scania Brazil’s 50th Birthday

Brazilian president Luiz Inácio Lula da Silva was among the guests and authorities who ...

Brazzil Magazine covers

President Rousseff Says Brazil Is Getting into Era of Prosperity with Drop in Inequality

According to Brazilian president Dilma Rousseff, Brazil is moving into an ‘era of prosperity’ ...