GE Capital to acquire 5% stake in US Airways.
GE Capital Corp will reportedly take a 5% stake in US Airways in exchange for USD830m in financing.
Under the deal, GE Capital will provide US Airways with USD120m in emergency financing to help run its operations during bankruptcy. The company will also provide USD360m in financing once the carrier emerges from bankruptcy and another USD350m of equity to start up leases on regional jets. In return, GE Capital will receive up to a 5% stake in US Airways along with 3.6m shares of preferred stock.
The agreement was approved by Judge Stephen Mitchell of the US Bankruptcy Court for the Eastern District of Virginia yesterday (16 January), reported Reuters.
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|Publication:||Airline Industry Information|
|Date:||Jan 17, 2003|
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