Varig Pays $56M To Keep Planes

Law360, New York (January 13, 2006, 12:00 AM EST) -- The financial troubles consuming the airline industry are not confined to the U.S. Brazilian airline Viacao Aerea Rio-Grandense SA, which has been operating under bankruptcy protection since June, has paid $56 million to avoid surrendering half of its planes.

The terms of the payment safeguard the planes until a March 21 hearing.

Varig, as the company is known, made the payment at a hearing in U.S. bankruptcy court. The $56 million will cover debts incurred by the company since it filed for Chapter 11 protection from...
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