US Airways Chapter 11 Restructuring Timeline Update

[chipmunn]

US Airways Chapter 11 Restructuring Timeline Update - October 1, 2002
October 5 – Last day that 341 Notice/Proof of Claim/Bar Date Notices must be mailed.
October 9 – 60th day since bankruptcy filing where the law makes it easier for the company to dispose of excess aircraft. US Airways has reached restructuring agreements with 16 of 18 lease companies and only 10 of 32 aircraft scheduled for retirement have obtained court approval to reject their lease agreements. The court said it would rule on the remaining two lessor objections, and presumably the 22 aircraft whose lease agreements have not been restructured, as soon as possible, reportedly before October 9.
October 22 – 341 Creditors meeting where company representatives may be asked questions relating to the company’s financial affairs.
October 23 – DOT second 30-day UA-US code share review ends. DOT noted on September 23 that this was the last time it may extend the code share review.
November 4 – Bar Date/Proof of Claims – last date creditors may file a claim with the court against the debtor.
November 7 – Third Omnibus Hearing. Major meeting agenda items include final approval of the debtor-in-possession (DIP) financing agreement, the release of the remaining $200 million credit facility to the company, and for the court to review/approve any additional equity plan sponsor offers that may be received.
December 12 – Fourth Omnibus Hearing.
December – Target month to file the Plan of Reorganization (POR) with the court.
January 16, 2003 – Fifth Omnibus Hearing.
February 2003 – Target month for the confirmation hearing.
March 2003 – Target emergence month

 

[Trish]

[BR][FONT color=#330033]Thanks a lot Chip for keeping us up to date on the proceedings. It saves a lot of time searching.[/FONT][BR][BR][FONT color=#330033]Trish[/FONT]

 

[Retired1]

Chip- Does the ATSB loan come after the aircraft leases are taken care of?

 

[chipmunn]

Hi Retired1:

Retired1 asked: Chip- Does the ATSB loan come after the aircraft leases are taken care of?

Chip answers: US filed a dual track ATSB application with one path a voluntary restructuring and the other a formal Chapter 11 restructuring. The Chapter 11 restructuring provides for a loan guarantee after bankruptcy emergence. Also noteworthy, the $500 million RSA DIP financing will become part of the federal government loan guarantee. Therefore, after emerging US would be eligible for another $500 million in financing to obtain the $1 billion ATSB total, plus any additional financing the company could arrange through either the public or private capital markets.

Chip

 

[allegheny1]

chip
one part of the procedings should cover facilities,leases.etc.
perfect time to finally consolidate if dave chooses to ie leave
the high rent crystal city offices.
do we know when these issues will be covered by the court.

thanks

 

[chipmunn]

Allegheny1:

I do not know what the company plans to do on facilities, but I'm sure that is being evaluated. There are multiple motions in front of the court and to be honest I have not researched each and every one of them.

In regard to CCY expense, there are intangible benefits to having the headquarters in DCA. First, if they would move the company would likely have to buy management homes, many employees may not relocate, replacements would have to be trained and hired. Company personnel would not have time effective Shuttle access to New York, direct access to the federal government, as well as being the home town airline of the national capital.

I'm not sure if the company is in a position to take on a relocation expense or disrupt management's focus during this critical time.

Chip