US Airways Judge to Rule on Carrier''s Bankruptcy Reorganization
By Jeff St.Onge
Alexandria, Virginia, March 18 (Bloomberg) -- A federal bankruptcy judge said he will rule after 5 p.m. local time today on a reorganization plan by US Airways Group Inc.
The carrier, seeking to avoid liquidation, proposed to hand over ownership to its creditors. Approval of the plan by U.S. Bankruptcy Judge Stephen Mitchell would clear the way for the seventh-largest U.S. airline to get out of Chapter 11 on March 31. Arlington, Virginia-based US Airways, with more than $10 billion of debt, filed for bankruptcy in August as losses widened following the Sept. 11 attacks.
The reorganization would give Alabama''s state pension fund 37 percent of the company, the Air Line Pilots Association 19 percent, other workers 11 percent and management 8 percent. Bondholders and other unsecured creditors would own 11 percent of the new shares, representing a 2 percent recovery of their claims. Existing shareholders would get nothing