Alana Gandra
Reporter - Agência Brasil

Rio - Luiz Roberto Ayoub, the judge who presides in the Rio de Janeiro business court that is handling the Varig case has decided to postpone the assembly of Varig creditors scheduled for next Monday, July 10. That means a second auction, which should take place two days after the creditor assembly, is also postponed.

According to court spokespersons, it has not been possible to conclude the examination of the proposal by VarigLog. The court (Administrador Judicial) and government legal officials (Ministério Público) must agree that the proposal is viable. It is reported that Volo Brasil, which controls VarigLog, was finalizing its presentation yesterday afternoon.

Spokespersons for Volo Brasil declared that the organization was opposed to a postponement of the assembly and the auction because it is shelling out money to keep Varig operating on a daily basis. So far it has paid over US$7 million in current operating costs just to keep the company flying.

Ayoub, in declarations to the media, said there are questions regarding the minimum price to be asked for the Varig Operacional (which will maintain the airliner's routes). Ayoub also pointed out that anyone interested in bidding must make a judicial deposit of US$22 million.

Translation: Allen Bennett