Varig granted temporary restraining order, preliminary injunction on aircraft leases

By Caroline Salls

Pittsburgh, June 28 - Varig SA was granted a temporary restraining order and preliminary injunction, which prohibits a lawsuit, action, enforcement process or proceeding or claim or demand of reclamation for any leased aircraft, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The injunction also keeps parties, including creditors, employees and utility providers, from terminating contracts for goods and services that would "threaten the contemplated restructuring."

Varig, a Rio de Janeiro, Brazil-based air carrier, filed for Section 304 bankruptcy on June 20. Its case number is 05-14400.

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