Varig Deals Continue To Stall In Midair

Law360, New York (July 10, 2006, 12:00 AM EDT) -- The future of bankrupt Brazilian airline Varig is still up in the air, with the newest bid to take over the carrier in jeopardy.

The former cargo division of the airline, Varig Logistica SA, sold recently to VOLO, an entity controlled by MatlinPatterson Global Advisors LLP, swooped in with an offer for the troubled airline after a bid by an employees consortium was rejected.

Varig Logistica wants to infuse $20 million in emergency funds and, later, $485 million more. However, Deliotte, the Brazilian court-appointed restructuring administrators,...
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