Reoranization Plan to be Filed Tonight

[GrahamAF]

Reuters
US Air to File Reorganization Plan Friday
Friday December 20, 12:53 pm ET
NEW YORK (Reuters) - Bankrupt US Airways (OTC BB:UAWGQ.OB - News) said it would file its reorganization plan with the U.S. Bankruptcy Court for the Eastern District of Virginia on Friday evening.
The company, which filed for bankruptcy protection in August, said the filing would reflect the timetable it laid out earlier in the year. The plan lays out steps to emerge from Chapter 11 protection and the firm''s restructuring, US Airways said in a statement.

 

[DCAflyer]

The Company's press release:

MEDIA ADVISORY

US AIRWAYS TO FILE PLAN OF REORGANIZATION
ARLINGTON, Va., Dec. 20, 2002 --

US Airways will file its Joint Plan of Reorganization of US Airways Group, Inc. and its Affiliated Debtors and Debtors-in-Possession and related Disclosure Statement later today with the U.S. Bankruptcy Court for the Eastern District of Virginia. Today's filing maintains the reorganization timetable announced in August 2002, at the commencement of the Company's "fast-track" Chapter 11 reorganization, which contemplates confirmation of the Company's reorganization plan by March 31, 2003.

The Plan of Reorganization and the accompanying disclosure statement will lay out the steps to emerge from Chapter 11 protection and how the company will be restructured. A hearing on the adequacy of the Disclosure Statement being filed today will be held by the Bankruptcy Court on Jan. 16, 2003.

As a courtesy to the news media, the company advises that the planned electronic filing with the Bankruptcy Court today is scheduled to occur this evening after the close of business (and that a related filing on Form 8-K with the Securities and Exchange Commission will be made early next week). The company will issue a news release via PR Newswire and make the filings available on the company’s Web site at www.usairways.com, as soon as practicable, but it is unlikely that it will be in time for this evening’s routine deadlines.

Reporters needing additional information should contact US Airways Corporate Communications at (703) 872-5100.

 

[Biffeman]

Is A320Driver Chip's new alias?

 

[A320 Driver]

It was NOT a bluff. We will need all the employee groups on board to weather a worst case scenerio. With the willingness of the unions that have come on board so far for round two, we've been given a little breathing room...but not much. Don't take for granted that a half effort will save this airline.

A320 Driver

 

[michael707767]

[blockquote]
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On 12/20/2002 12:23:39 PM USAirBoyA330 wrote:

Any ideas on just what is going on? With all the threats and grandstanding of the past week, I am sort of confused. Wasn't CCY supposed to be going to Home Depot to get wood and nails to board the place up this weekend?
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[/blockquote]

It was a bluff. ALPA and CWA bought it. I have to give CCY credit. Hit em with the bad news right before Christmas. Those bills from buying presents will be coming in soon. Well played.

 

[USAirBoyA330]

Any ideas on just what is going on? With all the threats and grandstanding of the past week, I am sort of confused. Wasn't CCY supposed to be going to Home Depot to get wood and nails to board the place up this weekend?
I am also surprised no info from AFA or IAM today. I called this morning and they are all in CCY negotiating. I wonder if the company feels like things are going well enough to go ahead and file the POR.

 

[DakotaHC8]

Keep in mind it sounds like they are bargining right down to the wire. AFA pretty much sounds like they are onboard as long as everyone else (incl management) gave.

The way this was done smells like they want to calm a jittery customer base from fears of a shutdown.

So now it comes down to IAM.

 

[chipmunn]

[FONT face="Times New Roman" size=3]The Plan of Reorganization (POR) will be a "conditional" POR based on obtaining the additional required union cuts. [BR][BR]The company has until January 31 to present its plan, but to emerge from bankruptcy by March and secure the final DIP payments, loan guarantee, and equity investment, to provide the liquidity to ride out the war with Iraq, the company must file its POR today. [BR][BR]US can amend tonights's filing before creditors vote on it, but the carrier faces signifcant risks by filing without having won vital concessions from the IAM and AFA. Simply put, the IAM and the AFA are risking the franchise and the ability for the company to remain an on-going concern.[BR][BR]In a letter to the pilot group dated December 19, US ALPA MEC Chairman Chris Beebe said, "The Company’s actual [FONT color=black][SPAN style="FONT-SIZE: 11.5pt; COLOR: black; FONT-FAMILY: Times-Roman"]revenue has fallen dangerously behind the projected revenue for the last four months of [/SPAN][/FONT][FONT color=black][SPAN style="FONT-SIZE: 11.5pt; COLOR: black; FONT-FAMILY: Times-Roman"]2002 and the entire year of 2003 that management presented to the ATSB in its loan application, and [/SPAN][/FONT][FONT color=black][SPAN style="FONT-SIZE: 11.5pt; COLOR: black; FONT-FAMILY: Times-Roman"]bookings and, in particular, revenue are expected to also be down in 2003. Satisfaction of revenue [/SPAN][/FONT][FONT color=black][SPAN style="FONT-SIZE: 11.5pt; COLOR: black; FONT-FAMILY: Times-Roman"]targets is also critical to maintaining our financing from RSA, without which the Company cannot [/SPAN][/FONT][FONT color=black][SPAN style="FONT-SIZE: 11.5pt; COLOR: black; FONT-FAMILY: Times-Roman"]emerge from bankruptcy as an operating company."[BR][BR]There is no bluffing here and its time to stop posturing, period. [BR][/SPAN][/FONT][BR]Chip[BR][/FONT]

 

[Schwanker]

It looks like US is playing the Union fears against them like a fiddle. Hopefully folks will realize it before it's too late.

Best of Luck to all U employees.

 

[goinfishin]

I especially liked the part where the unions were told they were going to be sued for breach of confidentiality for the shut down threats after they were told it wasn't a closed door subject. I also got a kick out of the lack of managements willingness to show all of us what they have given up. Some employee groups can't handle too much more financially.

 

[USAirBoyA330]

Well, Well...In true USAirways fashion waiting until the close of business Friday. We need some dramatic music in the background. Can't wait to see what goodies come out this evening.

 

[A320 Driver]

Too many posts too close together...NUTZ. [LOL] I'm in an optomistic mood today!


A320 Driver

ps Besides...It's Christmas!

 

[Biffeman]

ITrade, it was a push, and you do not know if it was utility or a mechanic doing the pushback. But since you like to throw stones, mechanic and related only do r&d at 22 stations, we fly into 89 and the stations where the ramp does r&d there is a higher rate of aircraft damage not because of 67 more stations, I am talking the same amount ot arrivals and departures.[BR][BR]And it is only $24 an hour, and they do the required daily checks, because every single one of our airplanes has to be seen by maintenance once per day, mechanic does a more intense walk around then any pilot has ever done, they are there to fix an airplane on demand instead of waiting in a room to be called further delaying maintenance and if the mechanic is on the headset and something goes wrong on push, he or she is in direct communication with the flight crew to solve the problem.[BR][BR]And another thing ask Chip what an IRO does on a european flight, he sits in the jump seat getting paid flight pay to sit in either of the pilots seat if they have to go potty, eat or take a nap. That is a good use of a $200,000 salary.

 

[A320 Driver]

Oh, and I got DSL!

 

[chipmunn]

Biff:[BR][BR]This is a fight for the survival US Airways, 30,000 jobs and their familes, and the communities this airline serves. Your motivation is very transparent.[BR][BR]According to Rueters just today Sam Buttrick of UBS Warburg said the airlines should rack up $7.4 billion in losses for 2002 and another $3.6 billion in 2003. What don't you get about this? Did you see the November ATA RASM data?[BR] [BR]If US fails, this could be another IAM lead Eastern Airlines collapse. I know, you can save your comments, because at least you would "have your dignity".[BR] [BR]Chip