Varig Wins Injunction To Keep Planes

Law360, New York (April 28, 2006, 12:00 AM EDT) -- Varig Brazilian Airlines is flying high for the moment after winning a decisive victory in a New York bankruptcy court Thursday. Judge Robert Drain extended the troubled airline’s embargo on the seizure of Varig aircraft by aircraft leasing companies to May 31.

The injunction will give Varig more time to continue its financial recovery plan, which includes possibly selling a part of the company. Under the plan, the international part of the company would remain with the airline’s creditors to pay back its debt.

The domestic...
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