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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: yard_man who wrote (187056)8/11/2002 6:54:12 PM
From: reaper  Read Replies (3) of 436258
 
US Airways goes BK
usairways.com

$3.5 billion in debt secured by owned aircraft, and another $10 billion in operating leases (i.e. they 'lease' the planes from someone like GE).

See this from the press release:
<<While US Airways was able to successfully negotiate cost-savings from many of its employee groups, the Company determined that is was unlikely to conclude consensual negotiations with certain vendors, aircraft lessors and financiers in a timeframe necessary to complete an out-of-court restructuring. Siegel cited as factors the large number of lessors and financiers and the Company's inability to reject surplus aircraft leases and return excess aircraft outside of Chapter 11.>>

i.e. they filed BK so they could get out of their leases and return certain aircraft (since i think +/- 20% of their planes are grounded right now, yes?).

by the way, they also had a $2.3 billion of un-funded pension and $1.4 billion of un-funded other post-retirement benefits, as of 31 December.

oh, and they say in the press release that the equity is likely worthless.

i'm sure the credit markets will be psyched to see this news in the AM.

hey Myth, take this press release, substitute the word "Ford" for "US Airways", and you will be holding in your hand a press release that will be issued on or about this date next year.

Cheers
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