Brazilian freight and logistics company VarigLog, a former subsidiary of its namesake airline, boosted its bid for the bankrupt carrier after a Rio de Janeiro bankruptcy court judge reversed his decision last week to present the approximately $500 million bid to creditors, who may be better off if Varig is liquidated, Bloomberg News reported. The judge will ask creditors to review the higher offer at a July 17 meeting. If it is approved, VarigLog could win the carrier's operating assets at an auction scheduled for the following day.

The new bid includes the option of a payment to creditors who prefer cash over 10-year bonds, among other provisions involving debt assumption, leasing and real estate. VarigLog already has spent $11 million keeping the airline afloat.