2000flyer
EASY FLYER
- Joined
- Nov 26, 2001
- Posts
- 1,586
Off the news wires:
THE AIRLINE, WHICH has mentioned bankruptcy as possibility after it lost $2.1 billion during 2001, said all of its flights are expected to continue without interruption. The Arlington, Va.-based airline said it received $500 million in financing to keep operating while it reorganizes.
“Ultimately, this effort is about our customers, employees and the communities we serve, as we seek to fix the airline’s finances and return to profitability,” said US Airways president and chief executive David Siegel. “US Airways will continue to operate while we complete our financial restructuring, and our customers should be confident that we will continue service to the more than 200 communities in our network.”
The airline, the nation’s seventh-largest, listed $7.81 billion in assets and $7.83 billion in liabilities in its petition, filed with the U.S. Bankruptcy Court for the Eastern District of Virginia.
The Court has scheduled a hearing for Monday at 10:30 a.m. EDT.
US Airways has been trying to wring $950 million in cost cuts from its 35,000 employees as part of a restructuring plan that was designed to stave off bankruptcy. Last week, it reached agreements with unions representing its pilots and flight attendants that called for wage and benefits cuts in order to keep the airline operating.
The airline said its debtor-in-possession financing will come from a group of institutions led by Credit Suisse First Boston and Bank of America Corp., with participation from Texas Pacific Group, which has signed a memorandum of understanding to provide $200 million in equity when the carrier emerges from bankruptcy.
“In the face of an uncertain and trying time for the industry, we have been impressed by the major strides taken by US Airways’ management and employees to significantly improve the competitiveness of the airline,” said Richard P. Schifter, a partner with Texas Pacific Group. “Given the progress made to date, the time required in Chapter 11 to complete the restructuring should be relatively brief.”
That’s besides the $1 billion collateralized loan that has been conditionally approved by the Air Transport Stabilization Board.
THE AIRLINE, WHICH has mentioned bankruptcy as possibility after it lost $2.1 billion during 2001, said all of its flights are expected to continue without interruption. The Arlington, Va.-based airline said it received $500 million in financing to keep operating while it reorganizes.
“Ultimately, this effort is about our customers, employees and the communities we serve, as we seek to fix the airline’s finances and return to profitability,” said US Airways president and chief executive David Siegel. “US Airways will continue to operate while we complete our financial restructuring, and our customers should be confident that we will continue service to the more than 200 communities in our network.”
The airline, the nation’s seventh-largest, listed $7.81 billion in assets and $7.83 billion in liabilities in its petition, filed with the U.S. Bankruptcy Court for the Eastern District of Virginia.
The Court has scheduled a hearing for Monday at 10:30 a.m. EDT.
US Airways has been trying to wring $950 million in cost cuts from its 35,000 employees as part of a restructuring plan that was designed to stave off bankruptcy. Last week, it reached agreements with unions representing its pilots and flight attendants that called for wage and benefits cuts in order to keep the airline operating.
The airline said its debtor-in-possession financing will come from a group of institutions led by Credit Suisse First Boston and Bank of America Corp., with participation from Texas Pacific Group, which has signed a memorandum of understanding to provide $200 million in equity when the carrier emerges from bankruptcy.
“In the face of an uncertain and trying time for the industry, we have been impressed by the major strides taken by US Airways’ management and employees to significantly improve the competitiveness of the airline,” said Richard P. Schifter, a partner with Texas Pacific Group. “Given the progress made to date, the time required in Chapter 11 to complete the restructuring should be relatively brief.”
That’s besides the $1 billion collateralized loan that has been conditionally approved by the Air Transport Stabilization Board.
