VarigLog Increases Offer For Airline

Troubled Brazilian airline carrier Varig is set to decide whether to accept an improved acquisition offer of $400 million by its former cargo subsidiary VarigLog. The company, now owned by Volo Brasil, made an offer earlier this month for $350 million which was rejected by Varig’s creditors and workers’ unions. Varig, which has debts of around $3.3 billion, has been under bankruptcy protection since last June and has now run out of operating cash. It faces closure should the government fail to intervene with a rescue plan.