fluhu
Mitglied
Varig bid decision delayed again as other offers surface
Friday June 16, 2006 Varig and the group of employees and unidentified investors who bid for the carrier, NV Participacoes, were granted another extension by Rio de Janeiro bankruptcy court Judge Luiz Roberto Ayoub, who had given the group until Wednesday to make a case for its BRL1.01 billion ($439 million) bid. The court now will reconsider the bid next week, giving it time to examine documents NVP delivered just half an hour before the Wednesday deadline and the opportunity to consider other offers. NVP proposed to pay BRL285 million cash, BRL225 million on workers' credit and BRL $500 million on debentures and future profits.
In Brazil, rumors grew earlier this week that three additional groups had interest in bidding for Varig. Some of those appeared confirmed yesterday, as Bloomberg reported that TAP Portugal and Air Canada, two of Varig's Star Alliance partners, might enter the fray along with Brookfield Asset Management, according to TAP CEO Fernando Pinto, who was in Rio de Janeiro. Investment groups Syn Logistica and Fontidec also have bid for Varig, Bloomberg said. Brazilian aviation authorities have a contingency plan in place in case the airline stops flying, including orchestrating the return of thousands of Brazilians who traveled to Germany for the World Cup.
by Edvaldo Pereira Lima
Friday June 16, 2006 Varig and the group of employees and unidentified investors who bid for the carrier, NV Participacoes, were granted another extension by Rio de Janeiro bankruptcy court Judge Luiz Roberto Ayoub, who had given the group until Wednesday to make a case for its BRL1.01 billion ($439 million) bid. The court now will reconsider the bid next week, giving it time to examine documents NVP delivered just half an hour before the Wednesday deadline and the opportunity to consider other offers. NVP proposed to pay BRL285 million cash, BRL225 million on workers' credit and BRL $500 million on debentures and future profits.
In Brazil, rumors grew earlier this week that three additional groups had interest in bidding for Varig. Some of those appeared confirmed yesterday, as Bloomberg reported that TAP Portugal and Air Canada, two of Varig's Star Alliance partners, might enter the fray along with Brookfield Asset Management, according to TAP CEO Fernando Pinto, who was in Rio de Janeiro. Investment groups Syn Logistica and Fontidec also have bid for Varig, Bloomberg said. Brazilian aviation authorities have a contingency plan in place in case the airline stops flying, including orchestrating the return of thousands of Brazilians who traveled to Germany for the World Cup.
by Edvaldo Pereira Lima
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