US AIRWAYS FAN
Feb 14, 05, 10:35 pm
http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=7626672
UPDATE 2-US Airways gets extended bankruptcy plan deadline
Mon Feb 14, 2005 07:20 PM ET
(Recasts, updates with background)
WASHINGTON, Feb 14 (Reuters) - US Airways Group Inc. (UAIRQ.OB: Quote, Profile, Research) and its largest creditor, General Electric Co. (GE.N: Quote, Profile, Research) , amended their aircraft restructuring agreement on Monday to give the carrier 30 more days to file a reorganization plan, the airline said.
While a bankruptcy judge in Alexandria, Virginia, has given the airline until the end of March to submit its new business plan without interference from third parties, US Airways had agreed with General Electric Co.'s aircraft financing unit late last year to file the plan before Feb. 15.
US Airways now says it hopes to file a plan by March 15.
GE holds leases on most US Airways aircraft, and the sweeping agreement last November to restructure aircraft debt gave the seventh-largest domestic carrier a temporary lifeline. The agreement still calls for US Airways to emerge from Chapter 11 by June 30.
US Airways filed its second bankruptcy petition in two years last September. It hopes to emerge as a leaner airline with a new route structure and substantially lower costs. It plans to operate as a low-cost carrier domestically, with premium routes to Latin America and Europe.
A US Airways spokesman would not comment immediately on why the extra time was needed, but airline executives had previously suggested an extension was possible. A GE spokesman could not immediately be reached for comment.
The airline is overhauling its route structure, taking delivery of new regional jets and awaiting the full impact of more than $1 billion on cost cuts finalized with its labor groups this year. It is also seeking a $250 million equity investment.
UPDATE 2-US Airways gets extended bankruptcy plan deadline
Mon Feb 14, 2005 07:20 PM ET
(Recasts, updates with background)
WASHINGTON, Feb 14 (Reuters) - US Airways Group Inc. (UAIRQ.OB: Quote, Profile, Research) and its largest creditor, General Electric Co. (GE.N: Quote, Profile, Research) , amended their aircraft restructuring agreement on Monday to give the carrier 30 more days to file a reorganization plan, the airline said.
While a bankruptcy judge in Alexandria, Virginia, has given the airline until the end of March to submit its new business plan without interference from third parties, US Airways had agreed with General Electric Co.'s aircraft financing unit late last year to file the plan before Feb. 15.
US Airways now says it hopes to file a plan by March 15.
GE holds leases on most US Airways aircraft, and the sweeping agreement last November to restructure aircraft debt gave the seventh-largest domestic carrier a temporary lifeline. The agreement still calls for US Airways to emerge from Chapter 11 by June 30.
US Airways filed its second bankruptcy petition in two years last September. It hopes to emerge as a leaner airline with a new route structure and substantially lower costs. It plans to operate as a low-cost carrier domestically, with premium routes to Latin America and Europe.
A US Airways spokesman would not comment immediately on why the extra time was needed, but airline executives had previously suggested an extension was possible. A GE spokesman could not immediately be reached for comment.
The airline is overhauling its route structure, taking delivery of new regional jets and awaiting the full impact of more than $1 billion on cost cuts finalized with its labor groups this year. It is also seeking a $250 million equity investment.