FlyerTalk Forums - Carl Ichan makes a bid

Once again information from AIRWISE:

Mar 5, 2001

Former TWA owner Carl Ichan was confirmed as the man behind a late bid for his old airline at the weekend. The bankrupt carrier goes up for auction at the end of this week.

An investor group, headed by banker Brian Freeman with Ichan as its backer, kept good its promise to submit a bid for TWA's assets which throws down a further challenge to American Airlines.

Ichan's group claims its bid is better for creditors as well as TWA employees and airline competition by keeping TWA independent. If American wins it intends to fold TWA into its own operations.

"With the requisite concessions from labor and the airline's aircraft lessors TWA can be returned to profitability and our proposed restructuring can provide a meaningful recovery to all creditors," said a statement from Freeman.

The statement quotes Icahn as saying he became interested in providing the financing for the Freeman group's proposal only after the International Association of Machinists and the Air Line Pilots Association each filed its own objections to the AMR proposal and the indenture trustee for TWA's unsecured bondholders interposed an objection indicating its view that the AMR proposal is illegal.

Icahn is backing the bid with USD$650 million in financing.

The group said it submitted the offer to TWA's Official Committee of Unsecured Creditors Sunday, and it has submitted a USD$50 million deposit on the bid. TWA is operating in Chapter 11 bankruptcy.

American came under fire today after Israeli sources claimed the airline intended to drop TWA's flights between the US and Tel-Aviv if it won the auction.