Seventh-ranked US carrier USAirways, which declared bankruptcy last August, announced it hadfiled a disclosure statement and reorganization plan aimed atemerging from Chapter 11 protection as early as next March.
The documents were filed in the United States Bankruptcy Courtfor the Eastern District of Virginia on Friday and a judge isscheduled to hear the plan January 16th.
The plan hinges on a $1 billion loan from the AirTransportation Stabilization Board (ATSB), a federal body created tohelp US airlines absorb the blow of the September 11 attacks, and a$240 million investment from its main creditor, RetirementSystems of Alabama (RSA).
It includes operating cost of more than $1.8 billionannually, including labor and pension costs andreoganization of its labor distribution.
US airways has yet to resolve a pension funding liabilityestimated at $3.1 billion dollars over the next seven years, and isexploring options to lower its pension expense.
The RSA will hold the lead investor position in the company witha 36.6 percent stake, and the remaining stock will be divided amongthe unsecured creditors, the federal government, General Electric,members of the Air Line Pilots Association, other employees andmanagement.
US Airways applied for Chapter 11 bankruptcy protection inAugust, the first major US carrier to do so since the September 11,2001 hijackings frightened many passengers out of the skies.
AFP