Atsb Says To Sell Us Airways, America West Loans

[700UW]

ATSB says to sell US Airways, America West loans
Fri Sep 23, 2005 08:26 AM ET

WASHINGTON, Sept 23 (Reuters) - The U.S. Air Transportation Stabilization Board on Friday welcomed US Airways' (UAIRQ.OB: Quote, Profile, Research) planned emergence from bankruptcy protection and merger with America West (AWA.N: Quote, Profile, Research) and said it would sell the airlines' loans to private investors.
"The board is working with a financial adviser to assess the remarketing of the two loans to private investors without the government guarantee and to gauge the marketability of the board's warrant to purchase shares in New US Airways," the board said.

It said it is receiving the warrant to buy shares in the merged company as part of compensation to the government for giving America West a loan guarantee in 2002.

The board said it was also looking at strategies to sell its remaining warrants in World Airways (WLDA.O: Quote, Profile, Research) and Frontier Airlines (FRNT.O: Quote, Profile, Research) .

 

[Pylit]

So, exactly how much did it cost the 'government' to guarantee the loans?
I thought the government was a non-profit organization.
Just another example of how your federal gov under W's administration is helping you, the American worker.
I'm voting for Hillary.

 

[USA320Pilot]

It would be good to have the government of out of the company's financial affairs.

UPDATE 1-US says to sell US Airways, America West loans

"The company has been recapitalized and is in good shape, and we think there's an appetite in the market for the debt without a government guarantee," said Mark Dayton, the stabilization board's executive director.

The board also wants to see if the new US Airways will repurchase more than 7.73 million warrants for stock in the new airline, which was an option in the original loan guarantee agreements with America West in 2002 and US Airways in 2003.

The warrants have an exercise price of $7.27 per share, but US Airways said in a regulatory filing there was no assurance the two sides would reach an agreement.

Complete Story

Regards,

USA320Pilot

 

[JayBrian]

I'd rather see the Gov't exercise the warrants than USAirways use cash to repurchase them.