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In Brazil, While Varig Withers Gol Grows
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Brazil's Gol to Offer 10 New Daily Flights Between Rio and São Paulo
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Fearing Inflation, Brazil Raises Interest Rates to 17.75%
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Low Inflation Gets Brazil Market Bullish
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Prodded by the Government, Brazil's Varig Decides to Help Tsunami Victims
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Bad News Brings Bears to Brazilian Market
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Flying Black America to Bahia, Brazil
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A New Daily from Washington to Brazil
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Oil and US Inflation Boost Brazilian Market
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Latin American Markets Surge. Brazil on the Lead.
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Brazil's Varig: What an Airline Shouldn't Be
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Domestic News Brings Brazil Market Down
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Interest Hike Depresses Brazilian Stocks
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Visions of Lower Interest Rates Push Brazil Up
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Chief of Staff Resignation Makes Brazil Go Shopping
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Brazil's Varig Flies into Bankruptcy Skies
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Lower than Expected Inflation in the Horizon for Brazil
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Brazil Market Sputters Ahead
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Cabinet Changes in Brazil Don't Stop Market's Bleeding
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US Market Rises. Brazil Follows the Leader.
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Ailing Varig Adds Flights to Brazil from NY and Miami in December
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Hurricane Katrina Spares Brazilian Bulls
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Political Instability Weighs on Brazilian Markets
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Industry Output Drop in Brazil Fuels Hopes Interests Will Fall
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U.S. Union Fights Takeover of Bankrupt Varig Assets in Brazil
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In Brazil All Eyes Are on the Central Bank, Hoping for Interest Cuts
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Brazil Closes Week With Record High Stocks
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Brazil Stocks Sink Deep on Interest Rate Concerns
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Portugal's TAP Lends a Hand to Bankruptcy-Bound Brazilian Varig
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TAP Brings Half a Billion Dollars to Save Brazil's Ailing Varig Airlines
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Look Who's Flying to NY: Brazilian TAM
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Brazil's Decision to Repay IMF Early Leads Stocks to Record High
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In Brazil Two Market Record Days Are Followed by Dive
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Brazil's Varig Repays Part of Debt in US Court and Delays Bankruptcy
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Boeing Gives Brazil's Moribund Varig a Break
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Brazil: Bankruptcy-Plagued Varig Hires US Firm Savvy on Distressed Airlines
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Brazil's Varig at the End of Its Rope. It Might Stop Flying Any Minute Now.
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Varig Employees Urge Brazilian President to Keep Bankrupt Airline Flying
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Cancelled Flights, No Government Bailout. Brazil's Varig Is on Its Last Leg.
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Nothing Short of a Miracle Can Save Brazil's Varig Airline, Says Expert
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Brazilian Investors Go Shopping After Recent Stock Market Sell-Off
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Being a Monopoly Contributed to Brazil's Varig Airline's Demise
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Past the Point of No Return Brazil's Varig Airline Tries Desperate Maneuvers
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British Government Warns: Brazil's Varig Airline Is on the Brink of Collapse
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Brazil: 3 Days of Advancing Stocks Plus 0.75 Reduction in Interest Rates
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Brazilian Government Sees Bankrupcy-Bound Varig Airline at Brink of Precipice
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Brazil's Gol Airline Flies Another Mile Into Collapsing Varig's Airspace
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Lula Hints Brazil Might Use Public Money to Rescue Bankrupted Varig
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US Inflation Brings Brazilian Stocks Tumbling Down
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Brazil's Varig Goes Earlier to Auction Block in Desperate Attempt to Survive
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Varig's Eleven: 11 Bidders Interested in Bankrupt Brazilian Airline
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Brazil: Bankrupt Varig Airlines Goes to Auction But Nobody Wants It
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Brazilian Judge Prolongs Bankrupt Varig's Agony
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Brazil Ready for Varig Shutdown. There Is Even a Secret Contingency Plan.
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Justice Approves Varig's Sale. It's Too Late to Save Brazilian Airline Though.
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Brazil's Bankrupt Varig Is Sold, But Airline Is Not Out of the Wood Yet.
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On Its Deathbed Brazil's Varig Sees Its Routes Being Partitioned
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IATA Expels Varig and Brazilian Airline Stops Flying to 11 Overseas Destinations
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Rising Foreign Investment Lifts Brazilian Stocks
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Group Who Bought Bankrupt Brazil's Varig Can't Raise the Money to Pay for It
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If Varig Goes Belly Up Too Bad, Life Goes On, Says Brazilian Government
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Varig Ticket Holders Stranded in the US Can't Go to Brazil
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Brazilian Airlines TAM and Gol Stocks Sink Together with Bankrupt Varig
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Brazil Varig's Situation Much Worse Than Expected, Says Expert
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Varig Buyers Can't Produce Deposit Money on Time. They Get New Deadline.
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On Death Row, Brazil's Varig Gets Final Chance to Keep Flying
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While Varig Draws Last Breath Brazil Readies Five Planes to Bring 28,000 Home
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New Auction for Brazil's Varig Only Next Week If Airline Can Survive That Long
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VarigLog Gets Until Wednesday to Explain Its Intentions Towards Brazil's Varig
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If Varig Is Sold Brazilian Government Wants Its Money First
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Two Courts, in Brazil and US, Decide Today Bankrupt Varig's Future
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Counting on Varig's Demise Brazilian TAM Gets 37 New Airbus Jets
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Varig Worker Union Files Suit Against Sale of Brazilian Airline
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Daily Doses of Foreign Cash Keep Brazil's Comatose Varig Alive
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If Brazil's Bankrupt Varig Is Sold 7,500 Workers Would be Fired and 40 Planes Retired
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Brazil's Varig One Step Closer to the Grave
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Brazil's Varig Bought for US$ 24 Million. 8000 Employees Get the Ax.
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New Varig's First Move: To Cancel All Domestic and International Flights
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Brazil's New Varig First Day: All Flights Cancelled, Good News from New York
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Another Day of Chaos and Heartache for Brazil's Varig Ticket Holders
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Brazil's Varig Fired Workers Vow to Fight in Court "Plunder" by New Owners
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Fired and Broken, Brazil Varig's Stewardesses Pose Nude for Playboy
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Brazilian Justice Sequesters Varig's Money to Pay Workers' Compensation
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Varig Threatens to Stop Flying If Brazilian Justice Keeps Blocking Money
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With Varig's Demise TAM Becomes Brazil's Number One Airline
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Three Brazilian Stewardesses, Orphans of Varig, Make the Cover of Playboy
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After Varig's Demise, Gol and TAM Keep Growing Fast in Brazil
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Star Alliance Kicks Brazil's Varig Out
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Foreign Tourists Fall by Half a Million in Brazil
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Brazil's Varig Is Now Gol. Tiny Rival Swallows Ex Airline Giant
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By Buying Varig Gol Airline Disputes Top Position in Brazilian Skies
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Gol Airline Vows to Become Number One in Brazil by Year's End
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Brazil Varig's New Air Pass Is Just for Non-Brazilians
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Continental Partners With Gol to Sell Tickets in Brazil and South America
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Brazil's Varig Expands International Cargo Service with New Planes and Routes
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International Passengers in Brazil to Benefit from New Gol-Varig Accord
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Brazil's Varig Gets to Fly to Paris Again
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Brazil's Airline Gol Vows to Cut Carbon Dioxide by 20%
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Brazil's Varig Starts to Spread Wings Overseas Again with Six Agreements
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Brazil Varig Airline's Logo Turns Orange, Its New Owner's Colors
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Brazil's Varig Is Flying Daily to London Again
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Gol Gets Its 100th Aircraft, a Boeing 737 Especially Designed for Brazil
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Brazilian Airline Gol Celebrates 7th Birthday Flying 7 Million
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Another Airline Bites the Dust in Brazil's Drawn-Out Air Crisis
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Brazilian Airlines Tam and Gol Have Credit Rating Downgraded
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Brazil's Gol Hopeful Final Merger with Varig Will Bring Back Blue Skies
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Buy from Brazil's Varig, Fly American Airlines. And Vice Versa
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Brazil's Gol Airline Merges Varig and Gol, But Keeps Both Brands
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Brazil's Gol and Varig Merge Operations and Enhance In-Flight Service
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Brazil's Gol Flies 6 Million and Gets US$ 27 Million Profit in 3rd Quarter
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Brazil: Why Varig Airline's Rescue Has Become an Impossible Proposition |
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Written by Allen Bennett
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Friday, 30 June 2006 |
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Today judge Luiz Roberto Ayoub, of a Rio business court (8ª Vara Empresarial do Rio), will send a copy of the proposal by VarigLog to buy Varig to government legal officials (Ministério Público) and the Deloitte consultancy firm, which is the administrator appointed by the court.
Buying a troubled airline loaded down with problems and debt is never easy. To ease the sale, Varig was divided into two parts: a debtridden Varig Comercial, where the company's liabilities have been placed (it is reported that Varig has debts totaling as much as US$ 3.5 billion). More than 30% of the debt is owed to the Brazilian government (back taxes and social security contributions, mostly). This is an important point because last week government legal officials obtained a court injunction enabling them to move to the head of the line of creditors. The other part of the old flagship airline is now known as Varig Operacional, and it is an attractive proposition as it has no liabilities, only Varig's domestic and international routes. Meanwhile, also last week, the union representing Varig employees went to court to question whether or not VarigLog is a legally eligible buyer under Brazilian legislation. Behind this maneuver is concern with another part of Varig debt: worker rights and benefits, not to mention salaries which are in arrears. Also under analysis is the Varig frequent-flyer program, known as "Smiles." The question is if and how it will be honored by any buyer. ABr
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