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TWA AND THE TWA CREDITORS' COMMITTEE ANNOUNCE THE SIGNING OF AGREEMENTS IN PRINCIPLE WITH THE IAM AND ALPA

 TWA AND THE TWA CREDITORS' COMMITTEE ANNOUNCE THE SIGNING OF
 AGREEMENTS IN PRINCIPLE WITH THE IAM AND ALPA
 MT. KISCO, N.Y., Aug. 24 /PRNewswire/ -- Trans World Airlines, Inc. (TWA) and the TWA Creditors' Committee announced today that, as a major step toward a stand-alone plan of reorganization, TWA has entered into agreements in principle with the International Association of Machinists (IAM) and the Air Line Pilots Association (ALPA). The IAM and ALPA join the Independent Federation of Flight Attendants (IFFA) who had signed with TWA Aug. 14. The agreements in principle generally provide for unprecedented three-year 15 percent wage, benefit and work rule concessions by all TWA employees in exchange for a 45 percent equity stake in the reorganized airline. Similar arrangements for TWA's non- contract employees will be implemented.
 All of TWA's employees have now joined with the company and creditors' committee in solidly backing the revitalization and establishment of a new TWA. TWA Chairman Carl Icahn stated, "The company and the creditors' committee have achieved their mutual objective of reaching agreements with the IAM, ALPA and IFFA. We are extremely pleased that all parties have come together to give new life to TWA. Combining these employee concessions with my $200 million cash infusion and my agreement to cancel over $170 million in face amount of debt will strengthen TWA and help to insure its future as an independent carrier. These along with other concessions by TWA's Creditors will save approximately $350 million per year and represent significant progress toward a plan of reorganization that will serve TWA's employees and creditors and the flying public's long-term interests."
 As part of the overall plan of reorganization, creditors would receive the remaining 55 percent of the equity in the reorganized airline, debt securities and preferred stock. Effectiveness of the agreements in principle is subject to certain conditions, including ratification by union members and TWA board of directors and bankruptcy court approval. To enhance profitability as part of the overall restructuring plan which has been endorsed by TWA's unions and creditors, TWA will initiate actions to implement an operating plan that will result in a streamlined operation, which will be accomplished by, among other things, voluntary early retirement incentives and layoffs.
 James Spiotto, counsel to the TWA Creditors' Committee, was quoted as saying, "The agreements with the TWA unions are a historic first, which represent the culmination of extensive negotiations and effort. Attention can now be focused on finalizing a plan of reorganization that revolves around these union agreements."
 Victoria Frankovich, president of the IFFA, stated, "The negotiations were tough, the concessions will be painful but necessary -- but this will be worthwhile because it will be an employee owned airline with an excellent future and a paramount interest in passenger service."
 With the full support of TWA's employees, the establishment of a firm financial base provided by these agreements and Carl Icahn's infusion, TWA is now positioned to concentrate on its main business: providing superior air travel service at good value to the travelling public.
 -0- 8/24/92
 /CONTACT: Don Fleming of TWA, 914-242-3760/ CO: Trans World Airlines, Inc. ST: New York IN: AIR SU:


KD-PS -- NY085 -- 2775 08/24/92 17:48 EDT
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Publication:PR Newswire
Date:Aug 24, 1992
Words:534
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