Airline eying possible bankruptcy protection MILWAUKEE (AP) =97 Midwest Airlines could be forced to file for Chapter 11= =20 bankruptcy protection if it does not get concessions from aircraft lessors,= =20 banks and unions by midsummer, company officials say. The Wisconsin-based=20 airline said this month it had not yet resumed suspended payments on more=20 than 35 airplanes. The suspension of about $9.5 million in payments began=20 in March and placed Midwest in default of its financial agreements for the= =20 first time in its 19-year history. The airline extended a 100-day=20 moratorium on the payments while it continues to negotiate more favorable=20 terms with a group of about 10 lessors and creditors. The value of the=20 leased planes dropped after the Sept. 11, 2001, terrorist attacks. The company said essential elements of its out-of-court restructuring plan= =20 to return to profitability are: =95 The renegotiated aircraft agreements. =95 Permanent pay concessions and productivity improvements from three labor= =20 unions. =95 Enhanced productivity from all employee groups. =95 Adjustments to the company's fleet plan. =95 New financing to replace its current line of credit, which expires at= the=20 end of August. "Significant progress has been made, but much more needs to be=20 accomplished," Robert Bahlman, senior vice president and chief financial=20 officer, said Thursday in a news release. "The full participation of our=20 lenders and lessors, unions and employees, is absolutely essential." He=20 added that if the company is not successful as to each component by=20 midsummer, it will consider restructuring with judicial assistance. The=20 company has not set a deadline for having agreements with its lenders,=20 lessors and unions, but the day is coming soon, said Carol Skornicka,=20 senior vice president and legal counsel. "We have to get people to=20 understand that we are not going to talk forever," she said. "We need to=20 create a sense of urgency." Should the airline seek bankruptcy protection,= =20 it would be only for a short time, Skornicka said. Companies use bankruptcy= =20 court to force agreements on lenders and unions that won't cooperate with=20 an out-of-court restructuring plan, she said. The company has cut operating= =20 expenses by more than $4.5 million a month, and its cash reserves were=20 aided by a recent infusion of $11 million in federal aid. The airline said= =20 it is still acquiring Boeing 717 aircraft on schedule each month, and its=20 new low-fare Saver Service is to begin in August. The airline also has to=20 finalize an agreement with Milwaukee County, Skornicka said. Under a=20 tentative deal, the county would be responsible for up to $8 million in=20 Midwest's debt, should the airline default on bond payments issued to=20 finance an airport hangar. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.carib-link.net/naparima/naps.html TnT Webdirectory: http://search.co.tt *********************************************************