MEC CODE-A-PHONE UPDATE - July 7, 2005
This is Jack Stephan with a US Airways MEC update for Thursday, July 7th, with two new items.
Item 1. America West Group Holdings and US Airways Group, Inc. announced today that Tudor Investment Corp., an asset management firm, has made a 65 million dollar commitment to provide equity funding for US Airways’ Plan of Reorganization in exchange for approximately 3.9 million shares of new common stock at a price of 16 dollars and 50 cents per share. This funding will occur along with other equity investments upon completion of the merger. With this agreement, the merger will now be funded by 565 million dollars in new equity investment and participation by suppliers and business partners that will provide the company with approximately 1.5 billion dollars in liquidity.
The terms of this agreement have been filed with the U.S. Bankruptcy Court.
Item 2. On July 1, the 30-day period for alternative offers on US Airways' proposed merger with America West Airlines ended without any competing offers having been submitted. The Merger Agreement and Investment Agreements are automatically deemed the “Approved Proposal†without any further court action.
On June 30, 2005, US Airways filed a motion seeking approval of its Disclosure Statement. ALPA and all other US Airways creditors, investors and unions have until August 5 to review the Disclosure Statement and file any objections they may have to the adequacy of the information in the Disclosure Statement. On August 9, the bankruptcy court will hold a hearing on whether to approve the Disclosure Statement. If the Disclosure Statement is approved, it will be sent along with the Plan of Reorganization and ballots to impaired creditors, which are generally creditors who will not be paid in full, for them to vote on it. Following the vote, a confirmation hearing will be held on whether to approve the plan itself.
Please remember we now have 1,574 pilots on furlough with approximately 400 pilots currently working at MDA or other Jets For Jobs carriers.
Thank you for listening.
Regards,
USA320Pilot
This is Jack Stephan with a US Airways MEC update for Thursday, July 7th, with two new items.
Item 1. America West Group Holdings and US Airways Group, Inc. announced today that Tudor Investment Corp., an asset management firm, has made a 65 million dollar commitment to provide equity funding for US Airways’ Plan of Reorganization in exchange for approximately 3.9 million shares of new common stock at a price of 16 dollars and 50 cents per share. This funding will occur along with other equity investments upon completion of the merger. With this agreement, the merger will now be funded by 565 million dollars in new equity investment and participation by suppliers and business partners that will provide the company with approximately 1.5 billion dollars in liquidity.
The terms of this agreement have been filed with the U.S. Bankruptcy Court.
Item 2. On July 1, the 30-day period for alternative offers on US Airways' proposed merger with America West Airlines ended without any competing offers having been submitted. The Merger Agreement and Investment Agreements are automatically deemed the “Approved Proposal†without any further court action.
On June 30, 2005, US Airways filed a motion seeking approval of its Disclosure Statement. ALPA and all other US Airways creditors, investors and unions have until August 5 to review the Disclosure Statement and file any objections they may have to the adequacy of the information in the Disclosure Statement. On August 9, the bankruptcy court will hold a hearing on whether to approve the Disclosure Statement. If the Disclosure Statement is approved, it will be sent along with the Plan of Reorganization and ballots to impaired creditors, which are generally creditors who will not be paid in full, for them to vote on it. Following the vote, a confirmation hearing will be held on whether to approve the plan itself.
Please remember we now have 1,574 pilots on furlough with approximately 400 pilots currently working at MDA or other Jets For Jobs carriers.
Thank you for listening.
Regards,
USA320Pilot
