NYTimes.com Article: US Airways Seeks More Time to File Plan

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US Airways Seeks More Time to File Plan

November 26, 2002
By BLOOMBERG NEWS






ALEXANDRIA, Va. Nov. 25 (Bloomberg News) - US Airways Group
Inc. asked a federal bankruptcy judge to extend by one
month a deadline for filing its plan to emerge from
bankruptcy.

The seventh-largest U.S. airline expects to submit its
recovery plan by the end of next month, with the aim of
completing its reorganization in the first quarter of 2003,
US Airways said in court papers.

An extension of the plan-filing deadline "will provide a
sufficient buffer to further refine, if necessary, a
business plan that will allow (US Airways) to compete in
today's rapidly changing transportation industry" the
company said in a filing with the U.S. Bankruptcy Court in
Alexandria, Va. The airline said creditors and investors
may offer further input on the plan.

Companies reorganizing in bankruptcy face a 120-day
deadline to produce a recovery plan. If the so-called
exclusive plan-filing period ends, creditors and
shareholders can advance competing proposals, adding costs
and potential delays.

US Airways, based in Arlington, filed for Chapter 11
protection in August after losses worsened because of the
Sept. 11 attacks, the economy's slide into recession and
the failure of a proposed sale to United Airlines parent
UAL Corp.

US Airways asked U.S. Bankruptcy Judge Stephen Mitchell for
a one-month extension of the plan deadline, which would
give the company the sole right to file a proposal through
Jan. 31. The deadline is set to expire on Dec. 31 and a
hearing on the extension request is scheduled for Dec. 12,
according to the filing.

US Airways owes creditors more than $10.7 billion. In the
first nine months of this year, the carrier had losses of
more than $850 million.

The company's plan to emerge from Chapter 11 is based on an
equity investment from Alabama's state pension fund. Last
week, US Airways said the Alabama fund was the only bidder
in a court-supervised auction to invest in and fund the
airline's reorganization.

http://www.nytimes.com/2002/11/26/business/26USAI.html?ex=1039322736&ei=1&en=08ab4ef3f31c806a



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