=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/10/06/f= inancial2115EDT0409.DTL --------------------------------------------------------------------- Wednesday, October 6, 2004 (AP) Aircraft maintenance companies call for Brazil's Vasp airline to file bankr= uptcy (10-06) 18:15 PDT SAO PAULO, Brazil (AP) -- Two Brazilian subsidiaries of General Electric Co. that provide maintenance services to financially troubled airline Vasp are calling for the bankruptcy of Brazil's fourth-largest airline. GE Celma and GE Varig Engine Service petitioned a local bankruptcy judge to declare Vasp insolvent, according to a statement the companies published Wednesday in newspapers. A court ruling in favor of the two GE subsidiaries would effectively lead to liquidation of Vasp, with any assets distributed to creditors. According to the two companies, Vasp owes them $3.2 million. In Brasilia, Defense Minister Jose Viegas Wednesday said Vasp needed to submit a debt payment plan by Friday "or else the company will lose its government certification and its planes will be grounded." As defense minister, Viegas is responsible for the Air Force, which regulates all civil aviation affairs. Viegas said that, among other debts, Vasp owes the government fees for using federally owned airports. He didn't specify the total debt owed by the company. On Tuesday, Vasp, which was privatized in 1990, announced that it was firing 380 workers from its 5,100 employee work force. Besides labor problems, Vasp has been beset by an aging fleet. The government recently grounded six of its Boeing 737s for failure to have detailed maintenance plans. That forced Vasp to cancel numerous flights around the country and scramble to find passengers seats on other airlines. Brazilian airlines have suffered from a drop in passenger demand since 2001 and from growing competition. ---------------------------------------------------------------------- Copyright 2004 AP