Midway to liquidate

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



Judge to order Midway Airlines to liquidate

 RALEIGH, N.C. (AP) - A federal bankruptcy judge said today he would order
the liquidation of the assets of Midway Airlines, a regional carrier for US
Airways that had fought bankruptcy for two years.

 "Sometimes despite the best efforts, reorganization efforts don't work out,"
Judge A. Thomas Small said.

 Gerald Juetter Jr., an attorney representing Midway Airlines, said the
carrier had been unable to reach an agreement with its 85 pilots and was
converting its attempted bankruptcy reorganization into a liquidation plan.
"Midway surrenders," Juetter said.

 Jack Butler, an attorney representing US Airways, said the company had
loaned Midway $8.6 million since December to keep Midway flying as a
commuter feeder airline for US Airways. But Midway is running out of money
and has been unable to operate its entire flight schedule in the past month,
Butler said.

Midway parked its eight aircraft Wednesday night, pending the bankruptcy
hearing.
The airline, which flew 30 daily round trips, grounded its planes and
customers were being rerouted onto other flights, US Airways spokesman David
Castelveter said today.

 "We will accommodate customers on other US Airways flights or those of other
airlines," he said. "There are other options for customers to get to their
destinations."

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]