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- Aug 20, 2002
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Creditors back US Air, want vote on restructuring
WASHINGTON, Aug 5 - US Airways Group Inc received a boost when its committee of unsecured creditors said it would support the airline's bankruptcy restructuring plan, which includes its merger with America West Airlines.
The committee said in court papers filed late this week that it was satisfied with proposed modifications in the airline's disclosure statement and recommended the plan be approved.
The disclosure statement sets out payment terms for creditors after the airline steps out of court protection, which is planned for this fall.
Unsecured creditors are scheduled to receive shares worth about 12 percent of the merged carrier, which will fly under the US Airways flag. The majority of the new airline will be owned by private investors.
The committee includes leasing and financing powerhouse GE Capital Aviation Services -- the airline's largest creditor -- along with various major U.S. airports, ticket distributors and other vendors.
"Progress has been substantial and, as a result, many of the issues raised in the filed objections have since been resolved," the creditors committee said.
Support of creditors is essential for a smooth reorganization and merger on the timetable set out by US Airways and America West.
"The America West transaction is key to (US Airways') reorganization and is supported by the committee," the group said in its filing.
Bankrupt United Airlines was upended by its creditors committee earlier this week when the group forced the carrier to delay filing its reorganization plan in Chicago. United's creditors will take another month to review the proposal.
United has been in bankruptcy since 2002. US Airways entered bankruptcy for the second time in two years last September.
http://yahoo.reuters.com/financeQuoteCompa...05238929_newsml
WASHINGTON, Aug 5 - US Airways Group Inc received a boost when its committee of unsecured creditors said it would support the airline's bankruptcy restructuring plan, which includes its merger with America West Airlines.
The committee said in court papers filed late this week that it was satisfied with proposed modifications in the airline's disclosure statement and recommended the plan be approved.
The disclosure statement sets out payment terms for creditors after the airline steps out of court protection, which is planned for this fall.
Unsecured creditors are scheduled to receive shares worth about 12 percent of the merged carrier, which will fly under the US Airways flag. The majority of the new airline will be owned by private investors.
The committee includes leasing and financing powerhouse GE Capital Aviation Services -- the airline's largest creditor -- along with various major U.S. airports, ticket distributors and other vendors.
"Progress has been substantial and, as a result, many of the issues raised in the filed objections have since been resolved," the creditors committee said.
Support of creditors is essential for a smooth reorganization and merger on the timetable set out by US Airways and America West.
"The America West transaction is key to (US Airways') reorganization and is supported by the committee," the group said in its filing.
Bankrupt United Airlines was upended by its creditors committee earlier this week when the group forced the carrier to delay filing its reorganization plan in Chicago. United's creditors will take another month to review the proposal.
United has been in bankruptcy since 2002. US Airways entered bankruptcy for the second time in two years last September.
http://yahoo.reuters.com/financeQuoteCompa...05238929_newsml
