Edla Lula
Reporter - Agência Brasil

Brasília - 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.]

Translation: Allen Bennett