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Employees make only bid for bankrupt Varig

Debt Help A group of employees made the only bid at Thursday's auction of the assets of bankrupt Brazilian airline Varig, offering nearly $450 million for the airline according to EFE news wire.

A group of employees made the only bid at Thursday's auction of the assets of bankrupt Brazilian airline Varig, offering nearly $450 million for the airline according to EFE news wire. The magistrate overseeing the bankruptcy, Luiz Roberto Ayoub, has 24 hours to study and then accept or reject the proposal, which put off the potential separate sale of individual Varig domestic routes and other assets.

Counseling Debt The magistrate overseeing the bankruptcy, Luiz Roberto Ayoub, has 24 hours to study and then accept or reject the proposal, which put off the potential separate sale of individual Varig domestic routes and other assets.

Once you declare yourself bankrupt you can be free from all unsecured debts, pay back less and stop creditors chasing for payment. However you have a huge risk of losing everything you own including your house and bankruptcy can prove to be very expensive. There are two ways to become bankrupt. You can either file your own bankruptcy petition where you obtain a form from your local county court fro £150 plus a £310 deposit or a creditor can make you bankrupt if you owe an unsecured debt of over £750.

Consolidation Consumer Debt Five companies participated in the auction, which took place at Rio de Janeiro's Santos Dumont airport and was attended by roughly 1,000 people.

Debt Settlement None of the firms submitted a bid in the first phase of the auction, in which a minimum bid price of $850 million was set for all of Varig's assets, or $700 million for everything excluding the airline's international operations.

Debt Free With no offer made, a second phase ensued with no minimum bid price. But only NV Participacoes - a firm representing Varig pilots and flight attendants - came up with a bid, making an offer of just over 1 billion reais (slightly less than $450 million).

Under the ruling, control of the carrier's assets passes to consultants Alvarez & Marsal, the firm Varig hired two weeks ago to manage the airline's efforts to get back on its feet. Brazil's flag carrier, which was founded 78 years ago, has debts of 7 billion reais (about $3.25 billion) supervised recovery process last June. The decision to freeze Varig's assets will have to be approved by the court overseeing administration of the airline.

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