Varig is understood to have sought permission from the court handling its bankruptcy protection filing to start negotiations to sell its cargo subsidiary VarigLog. Although Varig has not officially confirmed the deal, sources say that the sale would be part of the airline’s restructuring plan. If approved, VarigLog will be sold to the US-based Matlin Patterson investment fund for $38 million, with Varig retaining a small stake in the divsion.

Source: Flight International

Topics