USA320Pilot
Veteran
- May 18, 2003
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I read the story, Noticed the author finally got around mentioning the $250 Million Dollar Prepayment made to the ATSB in the first quarter...[900 mil - 250 mil = 650 mil..] The way I see it, The ATSB is now backing loans for Usairways for $650 mil., NOT $ 900 million. Is this correct ??USA320Pilot said:US Airways Seeks New Cuts From Workers
Company again holding discussions with the government about once again relaxing the terms of its $900 million guaranteed-loan package to stave off default
See Story
Respectfully,
USA320Pilot
Don't forget this quoteUSA320Pilot said:"Emphasizing the need to act quickly, Mr. Lakefield added, "Without a lower cost structure, US Airways could just run out of steam sometime next year." He gave no specifics about what that meant.
WOW. Great news. Now the company is worried about "NEXT year." I guess that is why they are negociating in such bad faith with their pilots! Happy days are here again...NEXT year, for gosh sakes this is fantastic! ) greeter.USA320Pilot said:"Emphasizing the need to act quickly, Mr. Lakefield added, "Without a lower cost structure, US Airways could just run out of steam sometime next year."
And leave it for you to drum right along with it. Don't forget the smoke signals they sending out too. Time to break out the drum and smoke too.USA320Pilot said:But he continued the drumbeat that the airline won't survive without further cost cuts -- particularly from its labor groups.
USA320Pilot said:If my memory serves me correctly, the guaranteed portion of the loan now stands at $673 million because part of the $250 million payment went to pay off part of the "at risk" portion of the loans too, which were provided by RSA and Bank of America.
As I earlier reported, US Airways has hired three firms to work on a pre-packaged bankruptcy filing, which could include new terms with the ATSB inside of bankruptcy.
John Lutz and the Seabury Group and FTI Consulting are working on financial matters and the company's long-time law firm of Skadden Arps has been replaced with bankruptcy specialists from the law firm of Arnold and Porter.
The finacial and legal advisors are working on two plans: keeping the loan guarantee and the security (stock) intact, so the company will not need debtor-in-possession financing, if necessary.
It's too early to tell how this will play out, but according to today's Pittsburgh Tribune-Reivew, "US Airways could break even in the recently completed second quarter, Chief Executive Bruce Lakefield said in a message to employees late Thursday. But he continued the drumbeat that the airline won't survive without further cost cuts -- particularly from its labor groups."
Respectfully,
USA320Pilot
after what they did to UAL...i wouldn't get my hopes up too much...As I earlier reported, US Airways has hired three firms to work on a pre-packaged bankruptcy filing, which could include new terms with the ATSB inside of bankruptcy.
Thank You JimBoeingBoy said:Insp89,
Almost correct. The original loan was for $1 billion, of which the government backed $900 million. The $250 million prepayment obviously reduced the outstanding loan to $750 million. Additionally, the sale of U's interest in Hotwire netted $30 million, of which 75% was also used to prepay the loan (per the revised ATSB covenants).
Jim
Please point out to us all what would actually be accomplished in a Bk filing. What...the stiffing of current vendors and aircraft leasors? The possible court destruction of employee contracts? Maybe even the supposed bulletproof retirements of failures W and G would be a target. We can only hope. In my feeble opinon its Chapter 7 or nothing....Just what we need...another "quick" BK. Greeter.USA320Pilot said:Just one more point...
I now understand that a pre-packaged bankruptcy with airport/facility leases and labor as targets (with S.1113 and S.1114 motions) could take as little as 120 days with a Plan of Reorganization filled with the court shortly after the Chpater 11 filing. Apparently, the loan guarantees would continue to be paid and the company would be required to maintain a mimum cash balance and EBITDAR requirements, to satisfy the board.
In addition, another option would be to reach new terms with the board based on new labor accords/projected savings, to prevent a bankruptcy filing.
By the way, who first reported on this website that US Airways was once again discussing new loan guarantee terms with the ATSB?
Respectfully,
USA320Pilot
By the way, who first reported on this website that US Airways was once again discussing new loan guarantee terms with the ATSB?