US may give up key assets
Mar 30, 2005, 2:33 pm
#1
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US may give up key assets
http://www.timesonline.com/site/news...d=478569&rfi=6
On Thursday, bankruptcy court could approve a deal that would shrink US Airways even further.
On Thursday, bankruptcy court could approve a deal that would shrink US Airways even further.
Mar 30, 2005, 3:50 pm
#4
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The Beaver County Times and Alleghany Times apparently just got around to reading the US Airways Motion requesting approval of the Republic agreement, which has been out there since the 15th. First - it's not a given that US will use the $125 million option which sells the slots. And even if they do, the key is that the slots will be leased back to US. US loses the slot asset if they decide not to lease, or default on a lease.
And let's not forget that the slots serve as collateral for the ATSB guarantees, so even if US chose to sell the slots and lease them back, the ATSB has a vote.
And let's not forget that the slots serve as collateral for the ATSB guarantees, so even if US chose to sell the slots and lease them back, the ATSB has a vote.
Mar 30, 2005, 9:18 pm
#5
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Originally Posted by CLTFlyer
First - it's not a given that US will use the $125 million option which sells the slots. And even if they do, the key is that the slots will be leased back to US. US loses the slot asset if they decide not to lease, or default on a lease.
At the current burn rate, figure it's lights-out sometime in June. Even with that $125 million, they still have to find more money to exit bankruptcy, and if fuel stays the way that it is, they'd need $600-800 million in cash to make it thru next winter.