US Air Asks To Keep Sole Right To File Plan Through January

[chipmunn]

[FONT face=Times New Roman][FONT size=3][SPAN class=t][STRONG]US Air Asks To Keep Sole Right To File Plan Through January[BR][/STRONG][/SPAN][BR]WASHINGTON - (Dow Jones)- US Airways Group Inc. is asking a bankruptcy court to extend through Jan. 31, 2003, the time the airline has the sole right to file a Chapter 11 reorganization plan, according to a motion filed with the court Friday.[BR][BR][STRONG]Complete Story: [/STRONG][/FONT][/FONT][A href=http://biz.yahoo.com/djus/021125/1232000558_1.html][FONT face=Times New Roman color=#0000ff size=3]http://biz.yahoo.com/djus/021125/1232000558_1.html[/FONT][/A][BR]

 

[Rob]

Suppose this means they need time to revise the plan if UAL joins them in Chap 11?

 

[chipmunn]

Rob:

On Friday, November 22, US Airways filed a motion with the bankruptcy court for the airline to have the sole right to file a Chapter 11 Plan of Reorganization through January 31, 2003.

According to Dow Jones, the filing said the carrier and its debtor entities fully intend, and are indeed obligated under various agreements, to file their plan of reorganization and disclosure statement before December 31. Also, US Airways said it expects it will file the plan and disclosure statement well before the year end in order to get court approval of the disclosure statement at a hearing scheduled for January 16, 2003.

Also notewrothy, court papers said the unsecured creditors' committee, which ALPA and the IAM are members, agreed with the proposed bridge order.

On the surface, it would appear the airline is having difficulty completing its reorganization, but it appears the airline has timed this motion with its intent to obtain union contract relief.

US Airways will meet with all of its labor leaders at 10:00 AM on November 26. According a recorded ALPA message on November 23, the agenda is for management to update labor on the US Airways’ ideas on potential solutions to the current problems the company is facing.

Reports indicate the company will provide the unions with one week, or until December 3 to reach voluntary concession accords on productivity and retirement changes, or the company can provide 60-day legal notice to terminate the defined benefit pension plans. If this occurs on December 3, 60 days will be January 30, 2003 or the same date the airline asked the bankruptcy court to extend its sole right to file a Chapter 11 Plan of Reorganization. Coincidental?

Chip

 

[usfliboi]

These appear to be normal moves and bumps along the way that a normal bk would bring! I wouldnt read anything in to it nor would i believe siegal is poised to demand changes in a week! When he says it ILL Believe it.

 

[Rob]

Coincidental?

Thanks for that insight. Given the company's present ability to pay or to defer contributions to the retirement plan, I would tend to think that one is less important than the productivity changes.

UAL's own December deadlines could well play a part in making the best case to the ATSB and to the bankruptcy court.

I don't happen to think that the UAL relationship is crucial to getting US out of Chapter 11. It's nice for the future, and it's a nice addition for buffing up the business plan, but it's hard for me, anyway, to see measurable revenue impact before the summer season. Summer isn't soon enough for Mr. Siegel's schedule.

So maybe the delay is intended simply to eliminate as many of the lingering unknowns as possible, whatever their sourcce.