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New Proposal For Varig, European Group  
User currently offlinePPVRA From Brazil, joined Nov 2004, 8941 posts, RR: 40
Posted (8 years 10 months 3 weeks 4 days 20 hours ago) and read 2183 times:

A group of Italian, Portuguese and Spanish investors have presented an informal proposal to invest in RG to the Justice department involved with RG's recuperation procedures (a la U.S. chapt.11). These investors have apparatnly tried to negotiate with RG before, but were left out once RG made an agreement with TAP earlier in the year.

The investors have asked for anonymity for now, therefore, the proposal is not really a valid one as it is not possible to grant any merit to it yet.

The plan would inject USD 90 million in the airline in the short term, with a letter of guarantee from Bradesco bank. The short term injection being critical for RG as they have cash flow problems.

They also plan to inject USD 20 million within the first twenty days, and another USD 300 million in the next ninety days. This all would be in the form of a loan, however a high interest rate would be charged: 11%.

If the size of the airline's financial hole is compatible to the value Rg's management is presenting, up to USD 1 billion could be injected in the airline. If the value is lower, they would get the loan back, which would have RG shares as a guarantee.

A new company would be set up in Brazil to control 70% of the shares (Brazilian legislation only allows 20% foreign ownership). The Ruben Berta Foundation shares, who currently controls RG with 87% of the shares, would be reduced to 10%.

The new offer could put an end to the impasse regarding the sale or VarigLog, RG's cargo subsidiary, which until recently has been stuck in the justice department due to accusations the subsidiary was being sold well below what it is worth, among other theories. However, VarigLog, or VEM, cannot be sold until 28SEP05 when RG presents a recuperation plan.

The national pilots/crew union sees this as an "interesting" proposal as it does not involve selling any of RG's subsidiaries.

RG's management has not yet met with the potential investors as their meeting was cancelled. However, the president of RG's management council, David Zylbersztajn, stated that the fact that they went to the Justice department is a good sign; "they are having a very cautious behavior [Just. Dept.] and the fact that they looked for the Justice [department] is a positive sign."


For the lucky people who understand Portuguese and can skip my translation attempt:
http://www1.folha.uol.com.br/folha/dinheiro/ult91u99956.shtml

---------------

Yet another proposal for RG. Sounds interesting, but it's not yet verifiable. And then there is TAP's new proposal coming in sometime this month...

Cheers and the best of luck for RG!

[Edited 2005-09-03 06:25:51]


"If goods do not cross borders, soldiers will" - Frederic Bastiat
7 replies: All unread, jump to last
 
User currently offlineLipeGIG From Brazil, joined May 2005, 11416 posts, RR: 59
Reply 1, posted (8 years 10 months 3 weeks 4 days ago) and read 2082 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Interesting. Sounds good but i have doubts in the terms of the guarantees presented by them.
But its what RG is in need, money, and urgent money !

Seems that the VELOG deal could improve their cash flow and also try to fix 9 aircrafts nowadays grounded (and not generating cash !), 2 of them are 772 !
Including PP-VRA !  Smile

Rgds,
Felipe



New York + Rio de Janeiro = One of the best combinations !
User currently offlineLipeGIG From Brazil, joined May 2005, 11416 posts, RR: 59
Reply 2, posted (8 years 10 months 3 weeks 2 days 23 hours ago) and read 1989 times:
AIRLINERS.NET CREW
FORUM MODERATOR

PP-VRA

Today i saw RG 772 PP-VRA back to service (one of their two best equipment available). Its running GIG-FRA and also the daily light GIG-BSB-MAO-BSB-MAO.

Also, PP-VRC is under Check C. Probably will be back next week as its not required to do any kind of engine maintenance.

Regards
Felipe



New York + Rio de Janeiro = One of the best combinations !
User currently offlinePPVRA From Brazil, joined Nov 2004, 8941 posts, RR: 40
Reply 3, posted (8 years 10 months 3 weeks 2 days 21 hours ago) and read 1952 times:

Quoting LipeGIG (Reply 2):
Today i saw RG 772 PP-VRA back to service (one of their two best equipment available). Its running GIG-FRA and also the daily light GIG-BSB-MAO-BSB-MAO.

Nice!! Big grin Big grin

Thanks for the update Lipe!



"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlineLipeGIG From Brazil, joined May 2005, 11416 posts, RR: 59
Reply 4, posted (8 years 10 months 3 weeks 2 days 20 hours ago) and read 1938 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Quoting PPVRA (Reply 3):
Nice!!

Thanks for the update Lipe!

I imagine it always good to see our username flying !!!!
Funny question.... Do you ever fly in this aircraft ?

Felipe



New York + Rio de Janeiro = One of the best combinations !
User currently offlinePPVRA From Brazil, joined Nov 2004, 8941 posts, RR: 40
Reply 5, posted (8 years 10 months 3 weeks 1 day 2 hours ago) and read 1860 times:

Couple of updates not really worth a whole new thread:

1. Varig kept the second place ahead of GOL for the second consecutive month in domestic market share. A dismall difference of less than half a percentage, but about the same as last month.

2. RG will not have to pay Infraero daily for airport fees anymore, which costed RG about 1 million BRL per day.

Cheers

[Edited 2005-09-06 23:31:24]


"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlineLipeGIG From Brazil, joined May 2005, 11416 posts, RR: 59
Reply 6, posted (8 years 10 months 3 weeks 18 hours ago) and read 1797 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Quoting PPVRA (Reply 5):
2. RG will not have to pay Infraero daily for airport fees anymore, which costed RG about 1 million BRL per day.

It's concession or " RG's decision " ?

Meanwhile, off-topic, i will be in ATL probably on november 13 and 17 (to and back from MIA). I will fly the new GIG-ATL as DL is offering a good price (US$ 550) to launch the flight on Rio's market. This time will be economy but i expect to fly on Biz on the near future. (note: i expect a lot of new flights like this from Rio!)

I will advise you as soon as i get confirmation.

Rgds,
Felipe



New York + Rio de Janeiro = One of the best combinations !
User currently offlinePPVRA From Brazil, joined Nov 2004, 8941 posts, RR: 40
Reply 7, posted (8 years 10 months 2 weeks 6 days 18 hours ago) and read 1727 times:

Quoting LipeGIG (Reply 6):

It's concession or " RG's decision " ?

Judicial decision RG was fighting, but Infraero can still protest the decision.

Quoting LipeGIG (Reply 6):

I will advise you as soon as i get confirmation.

Cool, would be very nice to meet you!

Cheers,
PPVRA



"If goods do not cross borders, soldiers will" - Frederic Bastiat
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