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US Airways forms agreement with GE Capital.

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

US Airways has formed an agreement with its largest creditor, General Electric Capital Corp, on financing required when the carrier emerges from Chapter 11 bankruptcy protection.

In papers filed on 27 December 2002 with the US Bankruptcy Court, US Airways stated that the parties have reached a global settlement to resolve all of their issues. Under the settlement, GE Capital has agreed to provide the airline with USD120m in debtor-in-possession financing, a USD360m loan for use after it emerges from Chapter 11, and USD350m of lease equity for the leveraged lease financing of regional jet aircraft.

GE Capital will then receive 3.8m warrants to buy Class A common shares of the reorganized company, along with 3.8m shares of Class A preferred stock, reported The Associated Press.

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Publication:Airline Industry Information
Geographic Code:1USA
Date:Jan 3, 2003
Words:148
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