US Airways files reorganisation plan.
US Airways has filed a reorganisation plan in bankruptcy court.
Under the terms of the plan creditors of bankrupt US Airways will receive either 10% of the outstanding money or stock in the new airline created after the merger with America West Airlines. US Airways, which is now in Chapter 11 protection for the second time since 2002, filed for bankruptcy in September last year.
The plan states that unsecured creditors with claims of less than USD50,000 would receive 10%, up to USD5,000, while unsecured creditors with claims larger than USD50,000 will receive stock in the merged airline, The Associated Press reported. The largest unsecured creditor is reportedly Pension Benefit Guaranty Corp.
According to Reuters, the airline also said that it is on track for the merger with America West this autumn.
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|Publication:||Airline Industry Information|
|Article Type:||Brief Article|
|Date:||Jul 1, 2005|
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