Varig Presents Swap Plan To Creditors

Law360 (January 19, 2006, 12:00 AM EST) -- The largest airline in Latin America, which has been operating under bankruptcy protection since last year, will present its creditors with a plan to swap credits for holdings in a fund that will assume control over the troubled company.

Brazilian airline Viacao Aerea Rio-Grandense SA sought Chapter 11 bankruptcy protection last June. A spokesperson for the company said acceptance of the proposal is essential in order for the struggling airline to lift itself out of its $3 billion debt.

The presentation was supposed to occur in...
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