• Categories
  • Archives

If Varig Is Sold Brazilian Government Wants Its Money First

A top government tax lawyer (Procurador Geral da Fazenda Nacional), Luis Inácio Adams, says that if Varig is sold the new owners’ priority should be the payment of company debts to the government.

Next in line would be government-linked suppliers, such as BR Distribuidora, and then the payment of worker rights and benefits. After that would come regular suppliers and banks.

Meanwhile, as Varig’s agony is prolonged, its stock has fallen over 60% since the middle of May. Does that sound bad? Investors say that if the 79-year-old company collapses in bankruptcy the stock could become worthless.

BR Distribuidora, a fuel distributor that is a subsidiary of Brazil’s state-run Petrobras, has announced that it will guarantee fuel for Varig jets until today, June 27.

"In view of recent events we are now negotiating a new payment plan that will take the company (Varig) through to the end of July," says a note from BR Distribuidora.

ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Trying to Make the Capital of Brazil a Player in Fashion Overseas

The fashion industry of Brazilian capital, BrasÀ­lia, has just established the Association of Fashion ...

Rad Carpet

Santana de Parnaíba, in the state of São Paulo, famous for its connection to ...

People for Export

If the exodus has helped in some way to alleviate the unemployment problem the ...

Brazilian Embraer’s 20-Year Forecast

Brazilian aircraft maker Embraer, based in the city of São José dos Campos, in ...

Brazil and Japan: A Powerful Duo Goes After UN Power

Japan and Brazil plan to press ahead in their efforts to gain permanent United ...

…And Deliver Us from the Cross in Brazil’s Public Places

When I had to perform the only mission that I’d rather never have to ...

Nothing Will Change, Says New Brazilian Finance Czar

Brazil’s new Finance Minister Guido Mantega said that the government’s conservative economic policies will ...

Brazil Gets Record Surplus and Stocks

Brazilian stocks reached record levels, despite the thin volume characteristic of the period between ...

Brazil to Discuss Trade Tariff Reduction at Summit of South in Doha

The reduction of trade tariffs between developing countries will be one of the themes ...

Brazilians Having a Hard Time Getting Out of Egypt

Brazilians in Egypt are having difficulties getting out of the country where daily demonstrations ...