Courting Trouble

Courting Trouble

Corporate & Sovereign Strategy

by Maria O'Brien   Robert Rauch Brazilian airline Varig's June bankruptcy filing hardly surprised anyone, since it's been in trouble for years. But the decision by Varig's new managers to file for protection from its creditors was significant because it came just days after Brazil passed new bankruptcy laws. Varig's $4.8 billion debt load makes this the largest Brazilian restructuring since the government spent $6.39 billion to bail out state-owned commercial bank Banco do Brasil in 1996. The Varig bankruptcy will pit Brazil's largest and oldest airline against the government – Varig's largest credi

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial