Alana Gandra
Reporter - Agência Brasil

Rio - Varig informs that, pursuant to a ruling by the Court of New York, it deposited US$ 6.7 million, yesterday (28), in partial payment of debts owed to US firms from which it leases some of its fleet. The settlement was reached on December 21 at a hearing attended by the president of the company, Marcelo Bottini, and representatives of the leasing firms. The sum will be divided among the 15 airplane lessors.

Judge Robert Drain, of the Court of New York, decided to extend the legal protections on Varig's planes until January 13. The grounds for the judge's decision were that the Brazilian company had complied with Brazilian court rulings to present a Recovery Plan approved by its creditors, had reactivated aircraft that were out of service for maintenance, and had submitted a schedule for repaying its debts to the leasing firms.

According to the company's press office, Varig plans to return to the Court of New York on January 13 with proof of the payments already made to the leasing firms. The company owes the leasing firms a total of US$ 44 million and expects to make good on US$ 19.7 million by the time of the next hearing in New York.

On January 8, Varig expects to present its recovery plan, backed by its creditors, to the 8th Business Court of Rio de Janeiro.

Translation: David Silberstein