CK
ScanFlyer Mile High Club
Varig files for bankruptcy protection
(Source : AFX, June 19, 2005)
Varig filed Friday for bankruptcy protection in a Rio de Janeiro court, demanding temporary suspension of its debt for 180 days, a company attorney said. The request in the court would bar creditors from taking legal action to demand that Varig pay back it debt, said attorney Marcelo Carpenter. Brazil's largest airline, which has accumulated US$2.6b in debt, simultanuously filed for bankruptcy protection in the US, according to a Varig official. Varig's move prompted the Sao Paulo stock exchange to suspend transactions of the airline's shares. The International Lease Finance Corporation (ILFC) had asked Varig on June 8 to return 11 Boeing aircraft if it failed to pay its bills by Friday. In May, Portuguese carrier TAP-Portugal and Varig signed an MOU under which TAP can directly or indirectly acquire a stake of up to 20% of Varig, the maximum allowed a foreign company by Brazilian law. Earlier this month, TAP-Portugal president Fernando Pinto said the rescue plan would take up to six months to be completed and that TAP would not inject capital directly into Varig.
Full Story: http://www.forbes.com/markets/feeds/afx/2005/06/19/afx2099950.html
(Source : AFX, June 19, 2005)
Varig filed Friday for bankruptcy protection in a Rio de Janeiro court, demanding temporary suspension of its debt for 180 days, a company attorney said. The request in the court would bar creditors from taking legal action to demand that Varig pay back it debt, said attorney Marcelo Carpenter. Brazil's largest airline, which has accumulated US$2.6b in debt, simultanuously filed for bankruptcy protection in the US, according to a Varig official. Varig's move prompted the Sao Paulo stock exchange to suspend transactions of the airline's shares. The International Lease Finance Corporation (ILFC) had asked Varig on June 8 to return 11 Boeing aircraft if it failed to pay its bills by Friday. In May, Portuguese carrier TAP-Portugal and Varig signed an MOU under which TAP can directly or indirectly acquire a stake of up to 20% of Varig, the maximum allowed a foreign company by Brazilian law. Earlier this month, TAP-Portugal president Fernando Pinto said the rescue plan would take up to six months to be completed and that TAP would not inject capital directly into Varig.
Full Story: http://www.forbes.com/markets/feeds/afx/2005/06/19/afx2099950.html
