DIP done


Oct 29, 2002
[SPAN class=t]US Airways Says Objections To New DIP Loan Resolved[/SPAN][BR][SPAN class=tt]Wednesday November 6, 3:58 pm ET[/SPAN] [BR][SPAN class=au]By Deborah Eckert, Of DOW JONES NEWSWIRES[/SPAN]
[DIV class=ar]WASHINGTON -(Dow Jones)- U.S. Airways Group Inc. (NYSE:[A href=http://finance.yahoo.com/q?s=u&d=t]U[/A] - [A href=http://biz.yahoo.com/n/u/u.html]News[/A]) said it believes it has resolved the only two objections to its new debtor-in-possession loan, subject to final review by the parties, according to a letter filed Tuesday with the court handling its Chapter 11 bankruptcy case.[/DIV]
[DIV class=ar] [/DIV]
[DIV class=ar]A hearing on final approval of the loan is scheduled for Thursday morning before Judge Stephen S. Mitchell of the U.S. Bankruptcy Court in Alexandria, Va. Judge Mitchell is also scheduled to take up several additional matters, including a number of agreements with parties holding interests in the company''s aircraft and aircraft-related equipment.
[P]Objections to the airline''s new $500 million DIP loan with the Retirement System of Alabama were filed by Massachusetts Port Authority and a group led by Goodrich Corp. Commercial Wheels and Brakes Division.
[P]The Retirement System, one of US Airways'' top creditors, has agreed to invest $240 million in exchange for an equity stake in the reorganized airline. The proposal is subject to higher offers. The due diligence period for other offers ends Monday.
[P]The port authority said it objects to the pledging or assignment of its leases and licenses as collateral for the loan. The port authority owns and operates Boston-Logan International Airport and leases and licenses the right to use some of the airport''s facilities to US Airways.
[P]Similarly, Goodrich Wheels said the wheel and brake spare parts it provides US Airways don''t belong to the airline and shouldn''t be considered collateral for the loan. Even if the parts are considered property of US Airways, Goodrich says it should retain a lien on the items that trumps any lien provided to secure the loan.
[P]US Airways won interim court approval in late September to use up to $300 million of the loan pending Thursday''s hearing.[/P][/DIV]


[P][BR]This is good news because the loan guarantee is collateralized by gates and slots versus stock, but of course this could change. It also means the company should receive $200 million in additional credit facility financing tomorrow. [BR][BR]Here's an additional article with more good news:[/P]
[P][SPAN class=t]US Airways Says Objections To New DIP Loan Resolved[/SPAN][/P]
[P][SPAN class=t][A href=http://biz.yahoo.com/djus/021106/1704000951_1.html]http://biz.yahoo.com/djus/021106/1704000951_1.html[/A][/SPAN][BR][/P]
[P]Chip[BR][BR] [/P]

Latest posts