US AIRWAYS FILES DISCLOSURE STATEMENT AND PLAN
OF REORGANIZATION IN PREPARATION FOR AMERICA WEST MERGER
ARLINGTON, Va., June 30, 2005 -- US Airways Inc. today filed with the U.S. Bankruptcy Court for the Eastern District of Virginia its disclosure statement and Plan of Reorganization (POR), which are based on its proposed merger with America West Group Holdings (NYSE: AWA) announced on May 19, 2005.
Today’s submission was made within the time period in which the company has the exclusive right to file a Plan. The timing also is consistent with the company’s agreement with General Electric Commercial Aviation Services (GECAS).
In addition to today's filing, US Airways and America West have achieved a number of other important milestones over the past week. The U.S. Department of Justice has completed its antitrust review and cleared the proposed merger. In addition, the companies have filed registration statements on forms S-4 and S-1 documents with the Securities and Exchange Commission that are necessary steps in the process of completing the merger.
The bankruptcy court has set a hearing on approval of the disclosure statement for Aug. 9, 2005.
The airlines remain on track to complete all regulatory and court requirements and to close on the merger transaction by late September or early October.
The disclosure statement and POR are based on the previously disclosed terms. Under the Plan as proposed, creditors having claims of $50,000 or less will receive a cash payment of 10 percent of the amount of their claim. Other creditors holding unsecured claims will receive stock in the reorganized company. The value of their recoveries will depend on the value of the shares of stock at emergence, as well as the total amount of allowed claims, including the amounts of disputed claims that have not yet been determined.
US Airways and America West will merge to create the first full-service low-cost nationwide airline, with a consumer-friendly pricing structure offering a network of low-fare service to over 200 cities across the U.S., Canada, Mexico, Latin America, the Caribbean and Europe, and amenities that include a robust frequent flyer program, airport clubs, assigned seating and First Class cabin service. The airlines will operate under the US Airways brand and will be headquartered in Tempe, Ariz.
When completed, the merger will be anchored by $500 million in new equity investment that has already been announced, as well as other potential equity and financing sources still under negotiation, and participation by suppliers and business partners that will provide the company with more than $1.5 billion in cash at the time of the transaction’s closing.
Separately, the period for other potential investors and interested parties to offer competing bids and alternatives for the merger proposal concludes at 5 p.m., Eastern time on Friday, July 1, with a hearing set for Thursday, July 7.
OF REORGANIZATION IN PREPARATION FOR AMERICA WEST MERGER
ARLINGTON, Va., June 30, 2005 -- US Airways Inc. today filed with the U.S. Bankruptcy Court for the Eastern District of Virginia its disclosure statement and Plan of Reorganization (POR), which are based on its proposed merger with America West Group Holdings (NYSE: AWA) announced on May 19, 2005.
Today’s submission was made within the time period in which the company has the exclusive right to file a Plan. The timing also is consistent with the company’s agreement with General Electric Commercial Aviation Services (GECAS).
In addition to today's filing, US Airways and America West have achieved a number of other important milestones over the past week. The U.S. Department of Justice has completed its antitrust review and cleared the proposed merger. In addition, the companies have filed registration statements on forms S-4 and S-1 documents with the Securities and Exchange Commission that are necessary steps in the process of completing the merger.
The bankruptcy court has set a hearing on approval of the disclosure statement for Aug. 9, 2005.
The airlines remain on track to complete all regulatory and court requirements and to close on the merger transaction by late September or early October.
The disclosure statement and POR are based on the previously disclosed terms. Under the Plan as proposed, creditors having claims of $50,000 or less will receive a cash payment of 10 percent of the amount of their claim. Other creditors holding unsecured claims will receive stock in the reorganized company. The value of their recoveries will depend on the value of the shares of stock at emergence, as well as the total amount of allowed claims, including the amounts of disputed claims that have not yet been determined.
US Airways and America West will merge to create the first full-service low-cost nationwide airline, with a consumer-friendly pricing structure offering a network of low-fare service to over 200 cities across the U.S., Canada, Mexico, Latin America, the Caribbean and Europe, and amenities that include a robust frequent flyer program, airport clubs, assigned seating and First Class cabin service. The airlines will operate under the US Airways brand and will be headquartered in Tempe, Ariz.
When completed, the merger will be anchored by $500 million in new equity investment that has already been announced, as well as other potential equity and financing sources still under negotiation, and participation by suppliers and business partners that will provide the company with more than $1.5 billion in cash at the time of the transaction’s closing.
Separately, the period for other potential investors and interested parties to offer competing bids and alternatives for the merger proposal concludes at 5 p.m., Eastern time on Friday, July 1, with a hearing set for Thursday, July 7.
