Seventh-ranked US carrier US Airways, which declared bankruptcy last August, said Saturday it had filed a disclosure statement and reorganization plan aimed at emerging from Chapter 11 protection as
early as next March.
The documents were filed in the United States Bankruptcy Court for the Eastern District of Virginia on Friday and a judge is scheduled to hear the plan January 16.
The plan hinges on a 1 billion dollar loan from the Air Transportation Stabilization Board (ATSB), a federal body created to help US airlines absorb the blow of the September 11 attacks, and a 240 million dollar investment from its main creditor, Retirement Systems of Alabama (RSA).
It includes operating cost custs of more than $1,8-billion annually, including labor and pension costs and reoganisation of its labour distribution.
It also provides for a 15-member board of directors which would include eight nominees selected by the RSA, four representatives of
US Airways union groups, CEO David Siegel, and two independent directors nominated by the company after consulting with the
unsecured creditors.
US airways has yet to resolve a pension funding liability estimated at $3,1-billion dollars over the next seven years, and is
exploring options to lower its pension expense.
The RSA will hold the lead investor position in the company with a 36,6% stake, and the remaining stock will be divided among the unsecured creditors, the federal government, General Electric, members of the Air Line Pilots Association, other employees and
management.
US Airways applied for Chapter 11 bankruptcy protection in August, the first major US carrier to do so since the September 11, 2001 hijackings frightened many passengers out of the skies. – Sapa-AFP