Flight International online news 11:00GMT: Brazilian carrier Varig’s majority shareholder has approved a plan under which TAP Portugal will acquire Varig’s cargo and maintenance units.
Varig’s controlling shareholder, the Ruben Berta Foundation, which is made up of employee interests, has approved a scheme under which TAP will acquire Varig freight unit VarigLog and maintenance arm VEM.
With assistance from Brazilian state-owned development bank BNDES, TAP will inject $62 million into Varig, says the Brazilian carrier.
This money – to be deposited in a bank account by 8 November, ahead of the next court session – will be used to pay leasing firms and avert seizure of the carrier’s fleet.
A Varig spokesman says that while the foundation has approved the “concept” of TAP’s investment, the airline is operating under bankruptcy protection, meaning that the courts, the Brazilian Government and BNDES still “need to bless” the scheme.
The Brazilian carrier says that the TAP scheme was unanimously accepted as being the most suitable for its initial restructuring phase by both its administrative council and management team.
TAP has also “reiterated its interest” in participating of the second phase of its reorganisation plan, according to Varig. This second step is aimed at generating $500 million investment in the group.
A spokeswoman for TAP says that it is “too soon” to comment on the development.
VICTORIA MOORES / LONDON
Source: Flight International
