US AIRWAYS RECEIVES COURT APPROVAL TO SELL FOUR AIRCRAFT; ATSB CASH-COLLATERAL AGREEMENT EXTENDED UNTIL LATE OCTOBER
ARLINGTON, Va., August 18, 2005 -- Judge Stephen S. Mitchell of the U.S. Bankruptcy Court of the Eastern District of Virginia today cleared the way for US Airways Group, Inc. to sell four of its Boeing 767 aircraft and one spare engine to Mountain Capital Partners LLC, an affiliate of Goldman Sachs Group, Inc., as part of a new sale-leaseback agreement with Mountain Capital.
The sale-leaseback agreement will provide US Airways with $30.8 million initially upon completion of the sale, and another $10 million after recurrent maintenance checks through 2009. US Airways has been operating under a month-to-month agreement with Mountain Capital, enabling the company to return planes and the spare engine as it takes delivery of new aircraft.
Judge Mitchell also approved an agreement between US Airways and the Air Transportation Stabilization Board (ATSB) that extends through Oct. 25, 2005, the company’s authorization to use the cash collateral that secures the ATSB’s federally guaranteed loans. The agreement also will allow US Airways to retain approximately 40 percent of the proceeds from the sale of certain assets on which the ATSB holds liens.
"Both of these transactions are key steps in our plans to provide additional liquidity and move us closer to emergence from Chapter 11 and completion of our merger with America West Airlines," said Ron Stanley, US Airways executive vice president finance and chief financial officer.
ARLINGTON, Va., August 18, 2005 -- Judge Stephen S. Mitchell of the U.S. Bankruptcy Court of the Eastern District of Virginia today cleared the way for US Airways Group, Inc. to sell four of its Boeing 767 aircraft and one spare engine to Mountain Capital Partners LLC, an affiliate of Goldman Sachs Group, Inc., as part of a new sale-leaseback agreement with Mountain Capital.
The sale-leaseback agreement will provide US Airways with $30.8 million initially upon completion of the sale, and another $10 million after recurrent maintenance checks through 2009. US Airways has been operating under a month-to-month agreement with Mountain Capital, enabling the company to return planes and the spare engine as it takes delivery of new aircraft.
Judge Mitchell also approved an agreement between US Airways and the Air Transportation Stabilization Board (ATSB) that extends through Oct. 25, 2005, the company’s authorization to use the cash collateral that secures the ATSB’s federally guaranteed loans. The agreement also will allow US Airways to retain approximately 40 percent of the proceeds from the sale of certain assets on which the ATSB holds liens.
"Both of these transactions are key steps in our plans to provide additional liquidity and move us closer to emergence from Chapter 11 and completion of our merger with America West Airlines," said Ron Stanley, US Airways executive vice president finance and chief financial officer.
