Printer Friendly

CREDITORS' COMMITTEE SUPPORTS CONTINENTAL'S PROPOSED PLAN

      CREDITORS' COMMITTEE SUPPORTS CONTINENTAL'S PROPOSED PLAN
    NEW YORK, July 9 /PRNewswire/ -- Continental Airline's court- appointed Creditors' Committee announced its support today for a proposal by MAXXAM Inc., Kidder, Peabody & Co. and Donaldson, Lufkin & Jenrette to finance reorganization of the airline.  The committee will join management in seeking an emergence from bankruptcy as soon as possible.
    Under the plan, Continental's pre-bankruptcy creditors will retain a significant equity position in the reorganized airline and will have representation on the board of directors.
    "The committee fully supports the MAXXAM proposal and believes that management is taking all steps necessary to ensure the future viability of the airline," said Committee Co-chair Randall G. Kominsky.  "We are pleased that the creditors will have a major stake in a healthy airline positioned to prosper in a competitive environment."
    "While the present proposal will reduce the ownership interest originally proposed for creditors, it also will provide Continental with additional working capital," said J. Chris Matthews of Ameritrust Texas, the Committee's co-chair.  "Given recent fare actions by American Airlines and others, it is in the creditors' interest to have a smaller stake in a healthy airline than full ownership of some other kind of enterprise."
    The proposal still must be approved by the Bankruptcy Court and is subject to higher and better offers.  A hearing to approve a procedure for consideration of the MAXXAM proposal has been set for July 22 in the Delaware Bankruptcy Court where Continental's proceedings have been pending since December 1990.
    -0-                   7/9/92
    /CONTACT:  Robert J. Rosenberg, 212-906-1370, or Bennett Murphy, 212-906-1345, both of Latham & Watkins for the Continental Airlines Creditors' Committee/ CO:  Continental Airlines ST:  New York, Texas IN:  AIR SU:  FNC RCN EH-JL -- LA021 -- 8096 07/09/92 19:54 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 9, 1992
Words:291
Previous Article:CONGRESS EXPANDS SCHOOLS' ACCESS TO BOND INSURANCE
Next Article:ARIANESPACE FLIGHT 51 MARKS OPENING OF NEW MARKETS
Topics:


Related Articles
CONTINENTAL AIRLINES & CREDITORS REQUEST EXTENSION OF EXCLUSIVITY PERIOD
CONTINENTAL CREDITORS COMMITTEE FILES SUIT AGAINST FRANK LORENZO
METRO AIRLINES, INC. FILES PLAN OF REORGANIZATION
CONTINENTAL ACCEPTS AIR CANADA/AIR PARTNERS BID
CREDITORS APPROVE CONTINENTAL PLAN OF REORGANIZATION IN LANDSLIDE VOTE
MARKAIR FLIES OUT OF BANKRUPTCY
AMERICA WEST BOARD OF DIRECTORS SELECTS AMWEST PARTNERS AS LEAD INVESTOR
AMERICA WEST AND CREDITORS AGREE: CONSENSUAL REORGANIZATION IN SIGHT
EASTERN AIRLINES FILES CHAPTER 11 PLAN; CREDITOR DISTRIBUTION APPROACHES INDUSTRY HIGH
Official Committee of Unsecured Creditors of Delta Air Lines confirms support for standalone plan.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters