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TWA FILES PETITION FOR REORGANIZATION AFTER REACHING ACCORD WITH NOTEHOLDERS

 TWA FILES PETITION FOR REORGANIZATION
 AFTER REACHING ACCORD WITH NOTEHOLDERS
 MT. KISCO, N.Y., Jan. 31 /PRNewswire/ -- TWA Chairman Carl Icahn today stated: "We have just successfully concluded our negotiations with all of our secured and unsecured bondholders. Additionally, we have today reached an agreement in principle with the International Association of Machinists, the union that represents approximately one- half of our employees. In light of this, TWA is now able to move ahead toward the successful completion of a pre-planned Chapter 11 reorganization, which would result in the elimination of approximately $1 billion in debt from TWA's balance sheet and approximately $150 million in annual interest charges. Toward this end, TWA has today filed in the U.S. Bankruptcy Court in Delaware, a petition seeking reorganization under Chapter 11 of the Bankruptcy Code. This filing was done with the support of all our secured and unsecured bondholders in order to accelerate the reorganization process."
 The conduct of TWA's normal business affairs will in no way be affected by the filing. TWA's travel schedule will remain in place; all TWA tickets and Frequent Flyer miles will be honored; and the previously announced expansions and improvements, including increased domestic and international service out of JFK, and the anticipated leasing of up to 40 additional DC-9's, will be implemented.
 TWA has on hand and available a total of approximately $500 million, consisting of cash on hand, an additional $100 million to be received within approximately 30 days from the previously announced sales of The Travel Channel and the Philadelphia and Baltimore to London routes (subject to government approval), and up to an addition $200 million from debtor-in-possession financing which will be arranged and submitted to the Bankruptcy Court for approval. Companies affiliated with Icahn will commit to the completion of such funding either with or without third party sources on terms at least as favorable to TWA as those otherwise available. Icahn further stated: "Having these funds will, in my view, be more than adequate to enable us to continue to conduct our normal operations and should insure the successful completion of our reorganization."
 Citing the business flyer programs that have increased passenger loads in recent months, Icahn said, "I am confident that the reorganization, combined with prior cost savings, will result in a stronger, more competitive airline, which will enable TWA to continue its innovations -- including dramatically low, restricted airfares and increased domestic service from JFK -- aimed at changing the business of business travel. I would like to assure all our employees and passengers of my sincere personal commitment to TWA. We have a grand history. I fully expect us to have an even more successful future."
 A press conference is scheduled for noon today at the St. Regis Hotel in Manhattan, at 2 East 55th St. at Fifth Ave., in the Versailles & Louis Suite, at which time Icahn and other TWA representatives will respond to inquiries from the media.
 -0- 1/31/92
 /CONTACT: Mark A. Buckstein of Trans World Airlines, 914-242-3035/ CO: Trans World Airlines ST: New York IN: AIR SU:


SH-OS -- NY017 -- 5797 01/31/92 16:58 EST
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Publication:PR Newswire
Date:Jan 31, 1992
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