Payments made

LavMan

Veteran
Feb 12, 2003
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US Airways Makes Airbus Aircraft Payments; Draws Down Portion of Remaining RSA DIP Facility
Friday March 7, 4:31 pm ET
Company is On Track for March 31, 2003 Emergence from Chapter 11
ARLINGTON, Va., March 7 /PRNewswire-FirstCall/ -- US Airways announced today that it has made payments on its 2000-1 and 2000-3 pass through trust related to Airbus aircraft. These payments, totaling $64.2 million, were due on Feb. 20, 2003, and March 3, 2003, respectively, and were made prior to the end of the applicable cure periods.
In addition, US Airways announced that, in connection with the Airbus aircraft payments, it had drawn down $69 million of the Retirement Systems of Alabama''s (RSA) debtor-in-possession financing facility (DIP). The remaining $131 million of the RSA DIP continues to be subject to the applicable closing conditions.
Although US Airways is on track to emerge from Chapter 11 on March 31, 2003, it first must resolve several remaining issues, each of which is critical to the company, including:
* Successful resolution of its pilot pension obligations. The company has
begun formal negotiations with the Air Line Pilots Association (ALPA)
following the U.S. Bankruptcy Court''s approval to terminate the existing
pension plan.
* The U.S. Bankruptcy Court must confirm the company''s proposed Plan of
Reorganization. Balloting on the plan by the company''s creditors closes
on March 10, 2003, and a confirmation hearing is scheduled for March 18-
20, 2003.
* Defer or make payment on 2001-1 pass through trust certificates related
to additional Airbus aircraft, due on March 20, 2003. Total value is
$27 million.
* Reach agreement on a replacement credit card processor.
US Airways was granted authorization on Jan. 17, 2003, by Judge Stephen S. Mitchell of the U.S. Bankruptcy Court of the Eastern District of Virginia, to solicit approval from its creditors on its plan of reorganization that provides for the airline''s emergence from Chapter 11 protection in March 2003.
Following a four-day hearing, on March 1, 2003, Judge Mitchell rendered a decision stating that US Airways had met the financial standards for a distress termination of the defined benefit pension plan for its pilots. The court''s finding was required for the Pension Benefit Guaranty Corporation (PBGC) to begin consideration of its separate approval process to formally terminate the existing pilot pension plan by March 31, 2003, in conjunction with US Airways'' planned emergence from bankruptcy protection set for that same day. Judge Mitchell also authorized US Airways to implement a defined contribution pension plan on terms to be worked out between the company and ALPA.
US Airways has received proposals from and is in negotiations with potential credit card processors for Visa and MasterCard transactions, once US Airways emerges from Chapter 11 bankruptcy protection and transitions its current relationship with National Processing Corp. (NPC), a division of National City Bank of Cleveland. US Airways currently has an agreement with NPC, which expires March 31, 2003, but which provides for a 45-day extension if a series of milestones are met.
Specifically, the 45-day extension with NPC requires that US Airways have a confirmed plan of reorganization and a new credit card processing agreement in place by March 31, 2003. US Airways then has to substantially complete the plan and close on the federal loan guarantee approved by the Air Transportation Stabilization Board (ATSB) by April 15, 2003, allowing for an extension of the NPC agreement until May 15, 2003. Assuming these conditions are met, US Airways would expect to transition to its new processor in late April or early May.
US Airways also has a debt obligation payable March 20, 2003, totaling $27 million dollars for 14 Airbus aircraft. The company currently is in discussions with certain interested parties regarding these payments and anticipates reaching agreement during the five business-day cure period, allowing for the extension of this payment, if necessary.
US Airways is the nation''s seventh largest airline and serves nearly 200 destinations in the U.S., Canada, Mexico, Europe and the Caribbean. It filed for Chapter 11 protection on Aug. 11, 2002, and has committed to a fast-track reorganization that targets the company''s emergence from bankruptcy protection on March 31, 2003.
 
This is just wonderful. If I am interpreting this correctly, US took a loan to pay for the defaults on two Airbus leases? This is pathetic! They took a draw of $69 million to pay $64 million in defaults? Was the extra $5 million for deliquent fees? Additionally, it is my understanding that assuming US does get the loan guarantee, and subsequently the $1 billion loan, they must immediately pay back RSA $500 million. My goodness, at this rate, US will be out of cash by Christmas.
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You are not comprehending anything and your hatetred for US is obvious. They drew down on a portion of the remaining $200 million of DIP financing. All airlines are trying to conserve as much cash as possible for when the war with Iraq happens.

If you read the papers or listen to the news you would see all airlines are hurting right now especially with the price of oil sky rocketing.

You people amaze me you want the airlines to give you everything and you pay nothing for it. And it was 34 airplanes involved, not two.
 
Hey Boof!genejockey has always been a supporter of U and his wife works for U.Listen to your own advice,"read and comprehend"
 
On 3/8/2003 11:31:47 AM LavMan wrote:

You are not comprehending anything and your hatetred for US is obvious. They drew down on a portion of the remaining $200 million of DIP financing. All airlines are trying to conserve as much cash as possible for when the war with Iraq happens.

If you read the papers or listen to the news you would see all airlines are hurting right now especially with the price of oil sky rocketing.

You people amaze me you want the airlines to give you everything and you pay nothing for it. And it was 34 airplanes involved, not two.
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Whoa! Did I miss something here? First and foremost, I most certainly do not hate US Airways. My wife has been employed with US Airways for 15 years. US Airways is a great airline with great employees and, in my opinion, HORRIBLE, clueless management. My comments were simply directed at the financial state of the this airline. In particular, the rate of cash burn and the fact that they are apparently using borrowed money to pay for "collective" lease debts. You referred to a portion of the remaining DIP financing? Incorrect! A huge portion of the last of the DIP financing...34.5%! All for defaults on two lease agreements. And yes, I am aware that there were many planes involved, but it was two particular instances when US defaulted on a scheduled lease payments.

"You people amaze me you want the airlines to give you everything and you pay nothing for it."
Huh? I don't have the slightest idea what you are talking about. Have a great weekend...I know I am.