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GE Unit Calls for Bankruptcy of Brazil's Vasp - 2004-10-07


A General Electric subsidiary in Brazil that provides maintenance to Brazil's financially-troubled Vasp airline, is asking a local court to declare the carrier bankrupt.

Celma, a subsidiary of the U.S. company, said Wednesday that Brazil's fourth-largest airline owes it some $3.2 million.

The announcement follows Vasp's firing Tuesday of 380 of its more than 5,000 workers. The airline also took six planes out of service recently.

Vasp is one of several Brazilian airlines that have suffered financial troubles in recent years due to a drop in passenger demand.

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