Company Watch - Varig.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jul 3, 2006

Varig's future is up in the air again as NV Participacoes, the employee-led investor group that was the only bidder at the June 8 auction of the bankrupt carrier, failed to make an initial $75 million down payment Friday, forcing a Rio de Janeiro bankruptcy court to cancel the deal. Judge Luiz Roberto Ayoub told reporters he will meet with government officials, creditors and accountants next week to determine Varig's fate, which could include another auction or liquidation. VarigLog, the airline's former freight unit, last week made another offer for its former parent, this time for $485 million, according to press reports. VarigLog was purchased in January by a consortium headed by investment firm Matlin Patterson. That offer is under review by the court and the Brazilian government. Approximately two-thirds of Varig's flights were cancelled on Friday. Jun 27, 2006

VarigLog deposited an additional $1.8 million Tuesday and Wednesday to keep Varig afloat, according to press reports, while a Rio de Janeiro bankruptcy court, prosecutors and creditors analyzed the freight and logistics company's $500 million bid for the airline. No ruling had been announced by yesterday afternoon. Meanwhile, a New York bankruptcy court judge extended an injunction against ILFC, Boeing and other creditors preventing them from seizing 25 aircraft before July 21, Reuters reported. Jun 30, 2006

VarigLog puts up $3 million for Varig, has until today to finalize offer. VarigLog, the former freight and logistics arm of Varig, has until Wednesday to finalize its offer for the beleaguered airline, a Rio de Janeiro bankruptcy court said yesterday, according to press reports. Jun 28, 2006