Varig aircraft lessor requests relief from preliminary injunction

By Caroline Salls

Pittsburgh, Sept. 9 - Varig SA aircraft lessor Ansett Worldwide Aviation, USA requested relief from the preliminary injunction in the company's Section 304 bankruptcy case, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The injunction prohibits a lawsuit, action, enforcement process or proceeding, or claim or demand of reclamation for any leased aircraft.

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

Ansett said it is seeking relief from the injunction to exercise its rights and remedies under the aircraft lease agreement, including terminating leases, repossessing aircraft and requiring Varig to reimburse the lessors for attorneys fees and expenses incurred under the agreement.

Ansett leases 14 aircraft to Varig, which failed to make the August payment on the lease, according to the motion.

A hearing is scheduled for Monday.

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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