BK Court Ok's GE's deal with UAIR

[lowecur]

For the uninformed and misled......boing! Just another step in the right direction.

Judge approves US Airways deal with GECAS

Thursday December 16, 1:27 pm ET


ARLINGTON, Va., Dec. 16 /PRNewswire-FirstCall/ -- US Airways today won bankruptcy court approval allowing the company to proceed with the aircraft leasing, financing, and engine services agreement announced on Nov. 26, 2004, with GE Capital Aviation Services (GECAS), and GE Engine Services (GEES).

The agreement provides US Airways with $140 million in interim liquidity through a new bridge facility and the deferral of aircraft debt and lease payments coming due over the next six months, as well as annual cash savings on aircraft ownership and engine maintenance costs. In addition, GECAS will lease up to 31 new 70- and 90-seat regional jet aircraft to US Airways over the next three years, and US Airways would return 25 of its 281 mainline aircraft over the same time period. In exchange, upon successful emergence from Chapter 11, US Airways would issue to GECAS a 15-year convertible note for between $125 million and $216 million, depending on future lease options selected by US Airways.

 

[fletch717]

I think this will only keep the wolves at bay for a little longer. USAir still has big labor problems and a CASM that is highest in the industry. Like my father used to tell me " son you can't borrow yourself out of debt." The LCC competetion is only going to get worse. As for the Luv/Ata deal, Southwest has become quite a predator. I'll be interested to see how it plays out over the next year.

 

[Boeingman]

Mr. Insurance man, these questions which you obviously can't answer are still applicable:

http://forums.flightinfo.com/showthread.php?t=44643

Interesting how you left out this minor tidbit of info on the press release:

"Court approval was one important hurdle, but the deal also requires US Airways to achieve nearly $1 billion in cost savings. The airline has so far secured agreements from unions for only part of its savings goal."


http://yahoo.reuters.com/financeQuo...=mtfh16761_2004-12-16_19-05-14_wen1438_newsml

And the covenant to exit bk is when? Right, that is in the above thread which you ignored. I guess it doesn't fit your contiued song and dance.

 

[lowecur]

Hello, Boing.

Let's see where do I want to start. So by Jan 14th, 05 they must secure nearly $1B in cost savings? Just what is the exact number, Boing? I think the wording on the SEC 8K is "In addition to court approval, the agreement requires that by Jan. 14, 2005, the company achieve a series of cost reductions and restructuring milestones, and it must complete its judicial restructuring and exit Chapter 11 by June 30, 2005.**"

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0000701345%2D04%2D000048%2Etxt&FilePath=%5C2004%5C11%5C29%5C&CoName=US+AIRWAYS+GROUP+INC&FormType=8%2DK&RcvdDate=11%2F29%2F2004&pdf=

So you see Boing, the exact number has not been disclosed. The news release you saw is journalistic latitude. Some writer filling in the blanks. If you want real information, you need to go to the SEC filing. Get it! The number GECAS and UAIR have agreed to may be alot less, we don't know. Also, we don't know the exact restructuring milestones. Get it! Probably not.

And some more info for your file. The FA's have accepted a tentative deal from UAIR. Of course it's all subject to vote, so you still have a half a leg to stand on.


http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/12-16-2004/0002636693&EDATE=

 

[Boeingman]

Hello, Boing.

Let's see where do I want to start. So by Jan 14th, 05 they must secure nearly $1B in cost savings? Just what is the exact number, Boing? I think the wording on the SEC 8K is "In addition to court approval, the agreement requires that by Jan. 14, 2005, the company achieve a series of cost reductions and restructuring milestones, and it must complete its judicial restructuring and exit Chapter 11 by June 30, 2005.**"


So you see Boing, the exact number has not been disclosed. The news release you saw is journalistic latitude. Some writer filling in the blanks. If you want real information, you need to go to the SEC filing. Get it! The number GECAS and UAIR have agreed to may be alot less, we don't know. Also, we don't know the exact restructuring milestones. Get it! Probably not.

And some more info for your file. The FA's have accepted a tentative deal from UAIR. Of course it's all subject to vote, so you still have a half a leg to stand on.

So the newspaper article that you left out the most important part of is now called "journalistic lattitude" by a writer "filling in the blanks". However, your first comment calls it a step in the right direction. Sounds like a contradiction there Mr. Insurance man.

 

[lowecur]

So the newspaper article that you left out the most important part of is now called "journalistic lattitude" by a writer "filling in the blanks". However, your first comment calls it a step in the right direction. Sounds like a contradiction there Mr. Insurance man.

Gotcha!

 

[Boeingman]

Gotcha!

I don't think so. I made the observation that you, as usual, distorted a news article with few actual facts. Then you later try and weasel out of it when called on it.

Some "gotcha" there insuranceman.