Article: Creditors reject proposed takeover of Brazil's debt-ridden Varig airline


AP Worldstream
12-20-2005
Dateline: RIO DE JANEIRO, Brazil
Creditors of Brazil's embattled airline Varig on Monday rejected the company's sale to a conglomerate run by the owner of two major local newspapers, a Varig spokesman said.

The conglomerate, Docas Investimentos, bought a controlling stake in Varig's owner FRB-Par last week, pending approval by creditors.

Docas' owner, businessman Nelson Tanure, announced he had bought 25 percent of FRB-Par and would rent 42 percent of its shares for 10 years, in a deal worth US$112 million (euro93.5 million).

But creditors rejected the move in a decision that drew cheers from Varig workers who feared Tanure, owner of the dailies Gazeta Mercantial and ...

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