LawnDart
Topic Author
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Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 6:37 am

Apparently employee group will buy.

Thoughts?
 
jetdeltamsy
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 6:54 am

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.
 
adriaticus
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 7:30 am

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...

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EddieDude
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 7:39 am

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-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
LatinPlane
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 9:17 am

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]
Pan Am - The World's Most Experienced Airline.
 
EddieDude
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 9:25 am

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-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
baron95
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 11:42 am

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
 
westindian425
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 2:53 pm

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
 
JMJAirways
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Tue Jun 13, 2006 9:13 pm

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 !
 
ghost77
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 3:04 am

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!
 
DETA737
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 3:12 am

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
 
PDPsol
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 3:12 am

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.
 
LatinPlane
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 3:17 am

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
Pan Am - The World's Most Experienced Airline.
 
ghost77
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 11:33 am

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!
 
LipeGIG
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 9:56 pm

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 !
 
sampa737
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 10:51 pm

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
 
piercey
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 11:42 pm

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.
 
A342
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Wed Jun 14, 2006 11:57 pm

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.
 
piercey
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 12:01 am

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.
 
tonytifao
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 12:04 am

Felipe,

Is RG canceling their US flights?

BTW, I love RGs excuse to all the canceled flights  Smile
 
A342
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 12:12 am

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.
 
latinaviation
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 1:33 am

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.
 
planeguy
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 2:09 am

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 
 
DAYflyer
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 2:17 am

This reminds me of the slow painful death that Braniff died.
One Nation Under God
 
antiuser
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 2:45 am

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!
 
EddieDude
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 2:55 am

Quoting Antiuser (Reply 24):
I guess the 777s would be temporary though, until more A330s and the A350s come?

That sounds right. Maybe JJ has requested Airbus to find some 772ER's for them until they can deliver new frames.
Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
PDPsol
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 3:21 am

Quoting LatinAviation (Reply 21):
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.

LatinAviation, the bankruptcy court is overseeing the sale of RG's operational ASSETS, not the sale of the RG corporate entity, with all associated financial liabilities.

RG's creditors concluded the carrier had failed to provide a viable restructuring plan [despite the assistance of high-priced restructuring advisors from Alvarez & Marsal] and decided to finally 'bite the bullet' and sell off the operational assets of the carrier.

In the US, such a sale under Chapter 11 bankruptcy protection is known as a '363 sale', referring to the clause in the US federal bankruptcy code.

HOWEVER, the creditors will retain their right to receive any potential funds stemming from a victory over Brasil's federal government in multi-billion BRL case involving damages from air fare price controls in the 1980's.

The bidders are bidding for the operational assets of RG and its associated franchise value.
 
latinaviation
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 3:35 am

Quoting Pdpsol (Reply 26):
LatinAviation, the bankruptcy court is overseeing the sale of RG's operational ASSETS, not the sale of the RG corporate entity, with all associated financial liabilities.

Thanks for the clarification, this is very helpful.
 
DTWAGENT
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 7:19 am

Another Sad day for the Airline industry.... Reminds me of Braniff and Eastern, Pan Am.......
 
sampa737
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 8:50 am

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 delayed. Sad indeed, DTWAGENT.
 
QANTAS077
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Thu Jun 15, 2006 10:45 am

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 biggest carrier, and Brookfield Asset Management Inc. may make a bid for Brazil's bankrupt carrier Varig.

The group, led by TAP, may seek to buy Varig, Brazil's biggest international airline, should a Brazilian bankruptcy judge reject a bid from a group put together by Varig employees, TAP Chief Executive Officer Fernando Pinto said. Pinto said he has met for several days with Judge Luiz Roberto Ayoub to learn more about the reorganization process.

``I came here today to talk to the judge, as I did two days ago to collect information,'' Pinto, who is also a former chief executive of Varig, told reporters in Rio de Janeiro. ``We don't have any proposals at the moment. But when we heard the employee bid might not be accepted, we decided to come and discuss the process and think of alternatives.''

The airlines interest in Porto Alegre, Brazil-based Varig, as Viacao Aerea Rio-Grandese SA is known, boosts the chances the carrier may avert a shutdown should Ayoub reject the offer made by NV Participacoes during an auction last week, Amaryllis Romano, an airline industry analyst said. Ayoub told reporters today at a news conference in Rio de Janeiro he delayed a ruling on NV's offer expected for today after other investors, including by Lisbon-based TAP, said they may present new bids.

Ayoub would only approve NV's offer if it increases the cash portion of its bid to $346 million from $125 million, Varig said in a court filing on June 13.

Investment groups Syn Logistica and Fontidec also have bid for Varig, Jose Carlos Tedesco, Ayoub's spokesman, told reporters at a news conference in Rio de Janeiro without providing any details.

http://quote.bloomberg.com/apps/news...&sid=aHQgXFojSyd4&refer=news_index
 
LipeGIG
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Fri Jun 16, 2006 3:35 am

Quoting Sampa737 (Reply 15):
Thanks for that report, Felipe. Rumo ao Hexa!!!

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 the second game!!!!!

Quoting Piercey (Reply 16):
Heh Felipe how you getting back to Brazil?

In fact i'm a JJ Frequent Flyer, but for this trip i decided to book on AF (GIG-CDG-HAM), Air Berlin (HAM-FCO), Ryanair (Rome-London Luton), LH (LHR-FRA-HAM), Air Berlin (HAM-OPO-HAM) and again Air France (HAM-CDG-GIG). I booked on last year, and used FF miles with AF (i use to fly DL and CO also) for an upgrade.

Quoting Piercey (Reply 16):
Speaking of LH, are the Star carriers going to assist internationally if RG shuts down or what are they going to do?

Seems that the last offer for RG has AC and LH fingers... just an inside not confirmed yet. I believe Star is trying to help Varig.

Quoting Antiuser (Reply 24):
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...

Seems that Tam could work to protect market with the government. Today i read an article that Tam received the approval to fly to FRA from ANAC (Brazilian DOT). Although is a valuable daily news, our press for aviation is not so good. So give them a 50% discount before a more valuable source can confirm it to me (and today is a Holiday in Brazil)

Felipe @ FCO
New York + Rio de Janeiro = One of the best combinations !
 
dforce1
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Fri Jun 16, 2006 3:55 am

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 interest is in this endeavour. And why did the article refer to AC as the country's biggest carrier? Surely, it did not mean Brazil's biggest carrier. As much as I hate to see an airline go down, I don't want AC to comprimise its healthy financial position by injecting money into a potentially doomed airline.
 
JJMNGR
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RE: Brazil Judge OKs Sale Of Varig With Conditions

Fri Jun 16, 2006 6:03 am

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 but SATA (VARIG GROUND HANDLING COMPANY).