US Airways misses reorganization filing deadline

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US Airways misses reorganization filing deadline
US Airways Group Inc. has missed the April 30 deadline to file its plan of reorganization. 

  

 
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Last month, the company moved its deadline from April 15, saying it was continuing discussions with its leading creditor, General Electric Co., "about US Airways' progress in finalizing a business plan" in bankruptcy. 

This is the fourth time the Arlington, Va.-based airline (OTCBB:UAIRQ) and GE (NYSE:GE) have postponed filing a plan. 

In November, US Airways and GE signed a deal giving the airline access to $140 million and up to 31 jets over the next three years. 

The agreement requires the carrier to exit from bankruptcy proceedings by June 30. The filing of a reorganization plan is an essential part of the process. 

US Airways, which filed for Chapter 11 protection from creditors in September, is seeking $350 million in financing for its reorganization plan and has secured commitments of up to $125 million from Republic Airways Holdings Inc. and $125 million from an investment group led by Appleton-based Air Wisconsin Airlines Corp.

Last month, US Airways and Arizona-based America West Airlines (NYSE:AWA) announced they were in merger talks to create a national low-cost airline. The deal would need approval of the bankruptcy court and creditors, as well as America West shareholders, unions and the U.S. government. 



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