Bankruptcy court demands Varig re-auction

A Brazilian bankruptcy judge has proposed a re-auction of ailing airline Varig SA on July 12, for an offer of $490 million, the Rio de Janeiro court said. The judge, Roberto Ayoub, called a July 10 meeting of Varig’s creditors to consider the offer and, if it is accepted, the company will be auctioned two days later, the court said.

The US-Brazilian consortium Volo do Brasil, grouping has offered $490 million dollars for Varig a week ago.