I think the judge's hesitance can be attributed to two factors. First, Brazil's chapter 11 bankruptcy law is new, and hasn't been used by a large company before. Of course the judge doesn't want to be the one who actually pulls the plug on a company this well known, and since there is little historical precedent to follow in Brazil, the judge has quite a bit of leeway to delay things.

Second, and don't take this as a criticism of the Brazilian judicial system because it is not necessarily a bad thing, judgeships in Brazil are often seen as a springboard to political positions. Brazilian judges have often been criticized for making decisions that might help them gain political positions in the future, rather that be appointed or elected positions. Looking just at the Supreme Court, former justice Francisco Rezek became a foreign minister, and Mauricio Corrêa publically considered running for state office while he was a judge on the court. On several occassions, justice Nelson Jobim (who was once chief justice) has been criticized for supporting any cause advanced by Lula in hopes of becoming Lula's running mate. Sepúlveda Pertence also has national political ambitions. Keeping that in mind, the Varig judge would not gain many future votes by pulling the plug on a company like Varig.