VarigLog, a former cargo transportation subsidiary of Varig, which was acquired by an investment firm, Volo of Brazil, at the end of last year, says it is ready to pay US$ 500 million for its former owner.
The proposal was made this week after an another investment firm that made the winning bid at the June 8 Varig auction failed to meet a deadline for a mandatory deposit.
Volo of Brazil is owned by a US investment fund, Matlin Patterson, and a group of Brazilian investors.
VarigLog now has until tomorrow to explain its objectives and lay out its plans for Varig before a business court in Rio de Janeiro and a bankruptcy court in New York.
According to spokespersons for VarigLog, the company has already spent US$ 3 million to cover current expenses for Varig and is willing to spend another US$ 20 million immediately.
Meanwhile, Varig is negotiating with its creditors so it can continue to obtain jet fuel and pay airport departure fees, and the companies it leases jets from as it struggles to continue flying.