Varig bid gets go-ahead
A bankruptcy judge in Brazil has tentatively approved a bid by a workers, group to acquire Varig, Brazil’s troubled flagship airline, the Miami Herald reports.
Judge Luiz Roberto Ayoub said in a news conference Monday that he would accept a $449 million bid by the TGV workers group to take over the domestic and international operations of Varig.
TGV was the only bidder at an auction June 8. The bid was approved even though the minimum bid had been set at $860 million.
The report said the judge granted tentative approval, but still wanted clarification on how TGV would finance the deal, the report said. TGV indicated it planed to put up $124.5 million in cash, and pay the remainder in labor credits and debentures, a type of unsecured bond the company would have to issue.