Employees make only bid for bankrupt Varig

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.

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.

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.

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).