=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/10/12/f= inancial2138EDT0403.DTL --------------------------------------------------------------------- Tuesday, October 12, 2004 (AP) US Airways reaches conditional deal to extend financing in bankruptcy (10-12) 18:38 PDT ALEXANDRIA, Va. (AP) -- US Airways Group Inc. reached agreement with its lenders, including the federal government, to conditionally extend a financing arrangement that allows the company to operate while in bankruptcy. The new deal extends until Jan. 15 an arrangement that allows the airline to tap funds from a $900 million government-backed loan the airline received when it emerged from its first trip into bankruptcy in March 2003. The previous deal was to expire on Friday. The extension is conditioned on a bankruptcy judge granting the airline's request to temporarily cut the pay of its union workers by 23 percent, which the company says is necessary to preserve its dwindling cash and avoid a possible liquidation. A hearing on the issue will resume Thursday after a judge heard testimony all day Tuesday. Daniel M. Kasper, a financial consultant with 25 years' experience worki= ng in the airline industry, testified that the company's situation is so dire that it "is looking over the precipice." He was hired by US Airways. ---------------------------------------------------------------------- Copyright 2004 AP