The new owners will also tell about 8500 employees to take a hike, retaining only 1600 for the "New Varig". This one still has a lot of life in it, with several court cases likely to start very soon.
1. Last week the staff of Varig voted to reject the offer by VarigLog. The judge in charge of the case over-ruled this vote on the basis that the employees had passed on their voting rights to financial institutions and therefore had no say in the matter. Expect that to be challenged soon.
2. The law here allows only 20% foreign ownership in any airline. VarigLog is almost exclusively foreign owned and so by extension so is the 'New Varig". The lawyers are already rubbing their hands in glee.
3. The judge in charge of the disposal of Varig has made several strange decisions, and quite a few odd comments. It's quite possible that there will be challenges to the legitimacy of the whole process.
It's not a pretty picture, and will probably run for years yet.