Varig To Auction Assets After All

Law360, New York (July 19, 2006, 12:00 AM EDT) -- Varig’s bankruptcy roller coaster took another twist Wednesday when a judge approved the Brazilian airline’s sale to a former subsidiary, thereby overruling the company’s creditors, who recently rejected the sale proposal.

A public auction will now take place Thursday, at which Varig Logistica SA, a former Varig cargo unit, is the favorite to acquire its old owner. All bids must be at least $24 million, though the actual selling price is expected to be much higher.

In making the decision, Justice Luiz Roberto Ayoub of the...
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