Varig Creditors To Decide If Airline Bid Will Take Flight

Law360, New York (July 11, 2006, 12:00 AM EDT) -- An offer by the former cargo division of troubled Brazilian airline Varig to buy its former parent has won the approval of a Brazilian court, but the deal still has to clear another hurdle—the airline’s creditors.

A meeting with the creditors is scheduled for July 17, according to Brazilian news reports. If the offer is accepted, an auction will be set. If no one submits a higher bid at the auction, the former cargo division will own the airline.

The division, Varig Logistica SA, sold recently...
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