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Brazil Judge OKs Sale Of Varig With Conditions  
User currently offlineLawnDart From United States of America, joined May 2005, 970 posts, RR: 3
Posted (8 years 2 months 2 weeks 4 days 21 hours ago) and read 4903 times:

Apparently employee group will buy.

Thoughts?

33 replies: All unread, showing first 25:
 
User currently offlineJetdeltamsy From United States of America, joined Nov 2000, 2987 posts, RR: 8
Reply 1, posted (8 years 2 months 2 weeks 4 days 21 hours ago) and read 4851 times:

The employee ownership of before only ran the company into its current state.

It will never work.



Tired of airline bankruptcies....EA/PA/TW and finally DL.
User currently offlineAdriaticus From Mexico, joined May 2004, 1137 posts, RR: 19
Reply 2, posted (8 years 2 months 2 weeks 4 days 20 hours ago) and read 4758 times:

What about the debt? Will it be assumed by the employee group?

I do hope to be totally wrong, but I am under the impression they will not be able to keep RG up and running for more than a few weeks...

__Ad.



A300/18/19/20/21 B721/2 B732/3/G/8 B741/2/4 B752 B762/3/4 B772/3 DC8/9/10 MD11 TU134/154 IL62/86 An24 SA340/2000 E45/90
User currently offlineEddieDude From Mexico, joined Nov 2003, 7571 posts, RR: 43
Reply 3, posted (8 years 2 months 2 weeks 4 days 20 hours ago) and read 4722 times:

Do you know what those conditions are? Could you perhaps post a link to an article or another source?

What is the position of the main creditors of the company? Do they favor or oppose an acquisition by the employees?



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently offlineLatinplane From United States of America, joined Dec 1999, 2716 posts, RR: 14
Reply 4, posted (8 years 2 months 2 weeks 4 days 19 hours ago) and read 4583 times:

Actually, at this point it seems most likely that Varig will shut down by tomorrow. The Lessors are moving in to seize 25 planes in the airline's fleet unless they are paid by tomorrow.

Over the weekend, Varig cancelled 48 flights in another clear move that the airline is headed towards final liquidation.

http://www.bloomberg.com/apps/news?p...d=abytdbK2yJVs&refer=latin_america



LatinPlane

[Edited 2006-06-13 02:22:27]

[Edited 2006-06-13 02:24:03]

User currently offlineEddieDude From Mexico, joined Nov 2003, 7571 posts, RR: 43
Reply 5, posted (8 years 2 months 2 weeks 4 days 19 hours ago) and read 4564 times:

Whoa! Terrible news. I think it will be very hard for NV Participacoes to double its offer and to make and advance payment tomorrow as required by the court. I also think it is very likely that lessors will try to repossess as soon as they confirm that the requirements of the court have not been met.

This is a sad day for Brazilian aviation.



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently offlineBaron95 From United States of America, joined May 2006, 1335 posts, RR: 8
Reply 6, posted (8 years 2 months 2 weeks 4 days 16 hours ago) and read 4415 times:

Actually TGV has until Wednesday at noon (Rio time) to change its cash offer from US$125M to US$250M, with the additional US$125M being made up of cash and/or holding debt from the existing company. They also have to prove to the judge that they can immediatelly pump in US$75M in cash into the "new airline".

I think the New York judge likely will stay the repossession of the aircraft in New York until Thursday.

Either way, Varig is dead. Even if the deal goes through, TGV will run it into the ground within days.



Killer Fleet: E190, 737-900ER, 777-300ER
User currently offlineWestIndian425 From United States of America, joined May 2004, 1024 posts, RR: 1
Reply 7, posted (8 years 2 months 2 weeks 4 days 13 hours ago) and read 4252 times:

Wow! I'm not too keen on Brazil's airline's industry. Do you suppose TAM and GOL helped take them out?

Neil



God did not create aircraft pilots to be on the ground
User currently offlineJMJAirways From Sweden, joined Apr 2005, 216 posts, RR: 0
Reply 8, posted (8 years 2 months 2 weeks 4 days 7 hours ago) and read 4085 times:

Quoting WestIndian425 (Reply 7):
Do you suppose TAM and GOL helped take them out?

Not really, but I think they will benefit from Varigs "dead"...

How are TAM and GOL reacting on this ?

Best regards



I am willing to pay extra for a A346 flight !
User currently offlineGhost77 From Mexico, joined Mar 2000, 5219 posts, RR: 51
Reply 9, posted (8 years 2 months 2 weeks 4 days 1 hour ago) and read 3883 times:

Quoting Latinplane (Reply 4):
Actually, at this point it seems most likely that Varig will shut down by tomorrow. The Lessors are moving in to seize 25 planes in the airline's fleet unless they are paid by tomorrow.

Its coming! 25 planes is a big number for its fleet! I've heard over here at MExicana that AWAS is acting fast in order to get all their frames back.

ghost77 APM



Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineDETA737 From Portugal, joined Oct 2000, 612 posts, RR: 0
Reply 10, posted (8 years 2 months 2 weeks 4 days 1 hour ago) and read 3870 times:

The New York judge has given Varig another week before their planes can be taken back. However if the company does not pay ILFC $3.6 million before 17:00 today, than their planes can be taken apparently. So the saga continues... I only found this news in Portuguese so far, the link is below.

http://oglobo.globo.com/online/plantao/2006/06/13/284240762.asp


User currently offlinePdpsol From United States of America, joined Feb 2004, 1115 posts, RR: 5
Reply 11, posted (8 years 2 months 2 weeks 4 days 1 hour ago) and read 3863 times:

BN is reporting RG's financial advisor, Alvarez & Marsal, has received an ADDITIONAL bid for USD 450 million in cash from an unidentified bidder:

http://www.bloomberg.com/apps/news?p...d=aNeVpFDrwYs0&refer=latin_america

My guess: Efromovich; he acquired AV's assets in bankruptcy and may be interested in doing the same with RG.


User currently offlineLatinplane From United States of America, joined Dec 1999, 2716 posts, RR: 14
Reply 12, posted (8 years 2 months 2 weeks 4 days 1 hour ago) and read 3850 times:

It seems that at this point, the lessors will not be able to seize their aircraft, as the judge handling RG bankruptcy case in the U.S. has given a week of extension for the airline to make its payments.

At the same time a new investor has appeared on the scene willing to invest $450 and ready to invest $75 in cash that would allow the airline to continue operating.

All the best wishes to Varig.


http://www.bloomberg.com/apps/news?p...d=aSQNHdJZARDM&refer=latin_america

LatinPlane


User currently offlineGhost77 From Mexico, joined Mar 2000, 5219 posts, RR: 51
Reply 13, posted (8 years 2 months 2 weeks 3 days 16 hours ago) and read 3655 times:

Any recent news respect ILFC aircraft repossession? What happen to the 17.00 limit hour for today? On a side note, judge has extended Boeing's and GE's request of taking away over 30 aircraft from RG to June 21st 06.

http://today.reuters.com/stocks/Quot...0_AIRLINES-BRAZIL-VARIG.XML&rpc=66

ghost77 APM



Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineLipeGIG From Brazil, joined May 2005, 11434 posts, RR: 58
Reply 14, posted (8 years 2 months 2 weeks 3 days 6 hours ago) and read 3486 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Hi guys, i'm in Germany (for the World Cup) and everything is going to fast! Waiting for Air Berlin HAM-FCO flight i read the news from Brazil:

Quoting JMJAirways (Reply 8):
How are TAM and GOL reacting on this ?

Both are just trying to negotiate some planes for their fleet (Gol is looking for the 2 73G and 2 738 from RG to fly South America routes, Tam as per rumors and news from Brazilian Press is trying to negotiate some 777s!!!)

Quoting Ghost77 (Reply 9):
Its coming! 25 planes is a big number for its fleet! I've heard over here at MExicana that AWAS is acting fast in order to get all their frames back.

But Varig is cancelling flights to LAX, JFK and MIA just to avoid loose the planes.

Quoting Ghost77 (Reply 13):
Any recent news respect ILFC aircraft repossession? What happen to the 17.00 limit hour for today? On a side note, judge has extended Boeing's and GE's request of taking away over 30 aircraft from RG to June 21st 06.

Varig has a deadline yesterday to pay US$ 3,6 mm to ILFC. Seems that a new group is interested in buy RG with US$ 400 mm cash.


Yesterday RG cancelled 11 flights in Brazil: 5 shuttle services, CGH-CNF, GRU-NAT, GRU-CWB, among others.

Very sad situation,

Felipe @ HAM



New York + Rio de Janeiro = One of the best combinations !
User currently offlineSampa737 From Brazil, joined May 2005, 637 posts, RR: 1
Reply 15, posted (8 years 2 months 2 weeks 3 days 5 hours ago) and read 3435 times:

I've checked several times a day because I know Felipe will have the latest no matter where in the world he is. I check the Folha but he's the man with the inside scoop.

Thanks for that report, Felipe. Rumo ao Hexa!!!
-Chris


User currently offlinePiercey From Sweden, joined Nov 2005, 2233 posts, RR: 1
Reply 16, posted (8 years 2 months 2 weeks 3 days 4 hours ago) and read 3379 times:

Heh Felipe how you getting back to Brazil?

Either way, RG is royally screwed. Hoping that LH provides relief to all of those in Germany.

Speaking of LH, are the Star carriers going to assist internationally if RG shuts down or what are they going to do?



Well I believe it all is coming to an end. Oh well, I guess we are gonna pretend.
User currently offlineA342 From Germany, joined Jul 2005, 4681 posts, RR: 3
Reply 17, posted (8 years 2 months 2 weeks 3 days 4 hours ago) and read 3358 times:

Quoting Piercey (Reply 16):
Either way, RG is royally screwed. Hoping that LH provides relief to all of those in Germany.

Speaking of LH, are the Star carriers going to assist internationally if RG shuts down or what are they going to do?

LH is short on longhaul aircraft, so don't expect much help.



Exceptions confirm the rule.
User currently offlinePiercey From Sweden, joined Nov 2005, 2233 posts, RR: 1
Reply 18, posted (8 years 2 months 2 weeks 3 days 4 hours ago) and read 3344 times:

Quoting A342 (Reply 17):

LH is short on longhaul aircraft, so don't expect much help.

isn't everybody?  sarcastic 



Well I believe it all is coming to an end. Oh well, I guess we are gonna pretend.
User currently offlineTonytifao From Brazil, joined Mar 2005, 1019 posts, RR: 0
Reply 19, posted (8 years 2 months 2 weeks 3 days 4 hours ago) and read 3343 times:

Felipe,

Is RG canceling their US flights?

BTW, I love RGs excuse to all the canceled flights  Smile


User currently offlineA342 From Germany, joined Jul 2005, 4681 posts, RR: 3
Reply 20, posted (8 years 2 months 2 weeks 3 days 4 hours ago) and read 3320 times:

Quoting Piercey (Reply 18):
isn't everybody?  Yeah sure

So why did you even ask then ?  Yeah sure
What could they do without more longhaul aircraft to fly back thousands of fans ?

Only airlines like Air Plus Comet or Air Pullmantur could "help".



Exceptions confirm the rule.
User currently offlineLatinAviation From United States of America, joined Nov 2003, 1276 posts, RR: 15
Reply 21, posted (8 years 2 months 2 weeks 3 days 2 hours ago) and read 3252 times:

Wasn't the judge supposed to rule on NV's ability to purchase Varig today? They have to prove they have the cash to proceed, plus inject $75MM within 3 days to Varig. I believe the $75MM is earmarked for lease payments in arrears.

Also, does anyone know who gets stuck with the $3bn debt load? There are conflicting reports if NV takes the debt or not. Logically, if NV plans to raise debt in order to fund its purchase of Varig, I would assume no, because there will be no appetite to float them more (and unsecured) debt.


User currently offlinePLANEGUY From United States of America, joined Aug 2001, 333 posts, RR: 0
Reply 22, posted (8 years 2 months 2 weeks 3 days 2 hours ago) and read 3205 times:

Very scary news here. Is LAN Brasil not too far away? Or if Synergy buys in will we see a "red" makeover for RG?  yuck 

User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 23, posted (8 years 2 months 2 weeks 3 days 2 hours ago) and read 3192 times:

This reminds me of the slow painful death that Braniff died.


One Nation Under God
User currently offlineAntiuser From Italy, joined May 2004, 657 posts, RR: 1
Reply 24, posted (8 years 2 months 2 weeks 3 days 1 hour ago) and read 3161 times:

Quoting LipeGIG (Reply 14):
Tam as per rumors and news from Brazilian Press is trying to negotiate some 777s!!

Wow. That's very surprising, especially when it comes to TAM. They're notoriously conservative with fleet and route expansion... I guess the 777s would be temporary though, until more A330s and the A350s come? If RG does go down, there'll be some unemployed 777 pilots looking for new jobs anyway...



Azzurri Campioni del Mondo!
25 EddieDude : That sounds right. Maybe JJ has requested Airbus to find some 772ER's for them until they can deliver new frames.
26 Pdpsol : LatinAviation, the bankruptcy court is overseeing the sale of RG's operational ASSETS, not the sale of the RG corporate entity, with all associated f
27 LatinAviation : Thanks for the clarification, this is very helpful.
28 DTWAGENT : Another Sad day for the Airline industry.... Reminds me of Braniff and Eastern, Pan Am.......
29 Sampa737 : I just came from dropping my son off at Garulhos, taking American tonight. Few Varig planes and the ones I saw were only 737s. Several of those were d
30 Post contains links QANTAS077 : TAP, Air Canada, Brookfield May Make Offer for Varig June 14 (Bloomberg) -- TAP SGPS SA, Portugal's state-owned airline, Air Canada, the country's big
31 LipeGIG : Yessss! I went to Berlim, now i'm in Rome (going back to Germany tomorrow but before i will spent a day in London). Sunday i wish to be at MUC for th
32 DFORCE1 : I'm routing for the TAP/AC takeover of Varig. But the article seems to focus more on TAP as opposed to AC. I would like to know what AC's vested inter
33 JJMNGR : I had lunch with a very close friend that works for TP and he guarantees me that Mr. Pinto arrived SAO this week in order to study the possibility to
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