Varig To Close Down Today?

So I've said that Varig might shut down earlier (see last post), even saying that a shutdown was imminent. However, Varig was saved (for the time being) - a group comprised of employees made a bid for it, and even though it was the only bid, the judge approved it.

Now, however, there are strong rumors floating around that Varig will cease operations sometime today - mostly because of a lack of cash. According to this source, this rumor is substantiated because:
  • Top managers at Varig were warned about the situation last night and were told that all planes had to return to Rio de Janiero.
  • Two U.S. court rulings allowed lessors to repossess 19 of Varig's aircraft.
  • The Brazilian Ministry of Defense, which oversees civil aviation activity, called a meeting of the CEOs of all the Brazilian airlines - except Varig.
So now you're probably asking if this is true. After all, I've cried wolf over here before (like last post). But even if Varig doesn't cease to exist today - which could still happen - they are in a very, very, very fragile financial condition. Unless Varig undergoes serious restruction (maybe even shutting the airline down temporarily and reopening), their prospects do not, unfortunately, look good.