=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/n/a/2006/01/12/financial/= f151711S52.DTL --------------------------------------------------------------------- Thursday, January 12, 2006 (AP) Brazil's Varig Wins Bankruptcy Extension (01-12) 15:17 PST SAO PAULO, Brazil (AP) -- Brazil's struggling airline Viacao Aerea Rio-Grandense SA, or Varig, said Thursday it paid $56 million to U.S. aircraft leasing companies and won an extension of its bankruptcy protection. A New York court extended protection to Varig until March 17, when Judge Robert Drain will assess the progress of the company's restructuring plan, Varig said in a statement. The company will present the plan to creditors on Jan. 31, Varig said. Burdened with debts of more than 7 billion reals ($3.1 billion), Varig sought local bankruptcy court protection in June. But leasing companies filed separate cases in New York. Varig raised money by selling its cargo unit VarigLog to the U.S.-based fund Matlin Patterson. On Thursday, the airline announced the sale of its maintenance subsidiary VEM to the Portuguese airline TAP for $72.2 million. Varig remains the dominant Brazilian carrier on the international market but has fallen behind TAM Linhas Aereas SA and the no-frills airline Gol Linhas Aereas Inteligentes SA on the domestic market. ---------------------= ------------------------------------------------- Copyright 2006 AP