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STATESWEST REACHES AGREEMENT TO RESTRUCTURE AIRCRAFT FINANCING ARRANGEMENTS

 PHOENIX, Feb. 19 /PRNewswire/ -- StatesWest Airlines Inc. announced today that it has filed a motion in its Chapter 11 proceedings asking the Bankruptcy Court to approve a stipulation between StatesWest and Beech Acceptance Corp. Inc., which provides for a comprehensive restructuring of StatesWest's aircraft financing arrangements with Beech. Under the terms of the stipulation, the principal balances of Beech's loans to StatesWest would be reduced and reamortized, with reduced monthly payments on the aircraft loans for a period of eight months providing substantial cash flow savings to StatesWest. The stipulation also calls for Beech to provide up to $2.2 million in engine overhaul financing and to defer in excess of $3.6 million in accrued interest and other claims, which would be waived if StatesWest is in compliance with its other obligations to Beech at Dec. 31, 1993. A hearing on the motion to approve the stipulation is scheduled before the bankruptcy court on March 12, 1993.
 Rudy R. Miller, chairman, president and chief executive officer of StatesWest, stated: "The agreement with Beech provides StatesWest with a solid framework for an overall plan of reorganization which would allow us to successfully emerge from Chapter 11. It is management's goal to file a reorganization plan with the court by the end of April 1993.
 StatesWest operates under code-share agreements with both USAir and Northwest Airlines feeding flights for the total travel network for USAir, and flights to the Pacific Rim system for Northwest Airlines. Traffic flows through the hub cities of Los Angeles and San Francisco. The airline operates approximately 4,000 monthly departures serving passengers in 13 western cities.
 -0- 2/19/93
 /CONTACT: Rudy R. Miller or Mary A. Nance of StatesWest Airlines, 602-225-0504/


CO: StatesWest Airlines Inc. ST: Arizona IN: AIR SU:

EH-MS -- LA026 -- 8471 02/19/93 14:49 EST
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Publication:PR Newswire
Date:Feb 19, 1993
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