Guest

Midwest To Extend Suspension Of Debt Payments

Tue Jun 03, 2003 11:14 am

Midwest to extend suspension of debt payments
A spokeswoman for Midwest Holdings Inc. said the airline would extend the suspension of aircraft debt and lease payments indefinitely, according to a report from Reuters.

The Oak Creek-based airline had suspended payments on the financed portion of nearly 40 aircraft in March in order to renegotiate the deals and bring them in line with the reduced value of the aircraft.

The company is seeking reduced payments that would help improve cash flow for the struggling airline.

"We will extend the moratorium (on payments) from June 7," Midwest general counsel Carol Skornicka told Reuters. "We haven't set a deadline, but we are making progress."

Midwest Holdings operates business-class air carrier Midwest Airlines and regional connecting service Midwest Connect. Midwest plans to launch a low-fare format of Midwest Airlines flying to leisure destinations Aug. 1.

On May 22, a unit of U.S. Bancorp filed a federal lawsuit against Midwest in an effort to recover three months of unpaid lease payments on aircraft the bank financed. The unit is seeking more than $693,000, plus interest on the payments.

In April, Milwaukee-based Marshall & Ilsley Corp., another Midwest lessor, wrote off $19 million related to the carrying value of lease obligations for airplanes leased to Midwest Airlines.
Source:gmtoday.com

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos