A330323X
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US Airways Files Plan Of Reorganization

Fri Jul 01, 2005 7:16 am

US AIRWAYS FILES DISCLOSURE STATEMENT AND PLAN
OF REORGANIZATION IN PREPARATION FOR AMERICA WEST MERGER

ARLINGTON, Va., June 30, 2005 -- US Airways Inc. today filed with the U.S. Bankruptcy Court for the Eastern District of Virginia its disclosure statement and Plan of Reorganization (POR), which are based on its proposed merger with America West Group Holdings (NYSE: AWA) announced on May 19, 2005.

Today’s submission was made within the time period in which the company has the exclusive right to file a Plan. The timing also is consistent with the company’s agreement with General Electric Commercial Aviation Services (GECAS).

In addition to today's filing, US Airways and America West have achieved a number of other important milestones over the past week. The U.S. Department of Justice has completed its antitrust review and cleared the proposed merger. In addition, the companies have filed registration statements on forms S-4 and S-1 documents with the Securities and Exchange Commission that are necessary steps in the process of completing the merger.

The bankruptcy court has set a hearing on approval of the disclosure statement for Aug. 9, 2005.

The airlines remain on track to complete all regulatory and court requirements and to close on the merger transaction by late September or early October.

The disclosure statement and POR are based on the previously disclosed terms. Under the Plan as proposed, creditors having claims of $50,000 or less will receive a cash payment of 10 percent of the amount of their claim. Other creditors holding unsecured claims will receive stock in the reorganized company. The value of their recoveries will depend on the value of the shares of stock at emergence, as well as the total amount of allowed claims, including the amounts of disputed claims that have not yet been determined.

US Airways and America West will merge to create the first full-service low-cost nationwide airline, with a consumer-friendly pricing structure offering a network of low-fare service to over 200 cities across the U.S., Canada, Mexico, Latin America, the Caribbean and Europe, and amenities that include a robust frequent flyer program, airport clubs, assigned seating and First Class cabin service. The airlines will operate under the US Airways brand and will be headquartered in Tempe, Ariz.

When completed, the merger will be anchored by $500 million in new equity investment that has already been announced, as well as other potential equity and financing sources still under negotiation, and participation by suppliers and business partners that will provide the company with more than $1.5 billion in cash at the time of the transaction’s closing.

Separately, the period for other potential investors and interested parties to offer competing bids and alternatives for the merger proposal concludes at 5 p.m., Eastern time on Friday, July 1, with a hearing set for Thursday, July 7.

Plan of Reorganization

Disclosure Statement
I'm the expert on here on two things, neither of which I care about much anymore.
 
ouboy79
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RE: US Airways Files Plan Of Reorganization

Fri Jul 01, 2005 7:20 am

Well unless there are any developments in the next 23 hours...we have an idea what their road map is going to be. Good luck to all.  Smile
 
A330323X
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RE: US Airways Files Plan Of Reorganization

Fri Jul 01, 2005 9:55 am

*Finally*, we have some details on the Airbus stuff.

The 10x A330-200 order has indeed been pushed back after all, to 2009-10, same as the 19x A32X. The 20x A350-800 are to be delivered 2011-13.

Also of note is that US has the option to cancel the A330-200 orders once it has put down enough deposits on the A350s; US also has the strange option to convert 10 of the A350 orders into A330 orders.
I'm the expert on here on two things, neither of which I care about much anymore.
 
ouboy79
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RE: US Airways Files Plan Of Reorganization

Fri Jul 01, 2005 1:31 pm

Quoting A330323X (Reply 2):
The 10x A330-200 order has indeed been pushed back after all, to 2009-10, same as the 19x A32X. The 20x A350-800 are to be delivered 2011-13.

Also of note is that US has the option to cancel the A330-200 orders once it has put down enough deposits on the A350s; US also has the strange option to convert 10 of the A350 orders into A330 orders.

I won't be shocked if they get moved up - should finances warrant. I would imagine the 330 option over the 350s provides for some insurance should the 350 not meet expectations.
 
masseybrown
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RE: US Airways Files Plan Of Reorganization

Fri Jul 01, 2005 1:49 pm

There had been some talk that the common holders would be offered rights to buy new common, but I guess they have enough buyers for the new common to eliminate the need for any rights offering.
 
ikramerica
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RE: US Airways Files Plan Of Reorganization

Fri Jul 01, 2005 1:51 pm

Quoting Ouboy79 (Reply 3):
provides for some insurance should the 350 not meet expectations

well one expectation is that it is actually launched...

anyway, the fact that the A350 "orders" can be converted to A330s means that those who wanted to book those 20 orders despite the merger not even happening yet have another roadblock.
Of all the things to worry about... the Wookie has no pants.
 
N200WN
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RE: US Airways Files Plan Of Reorganization

Fri Jul 01, 2005 2:14 pm

Quoting Ouboy79 (Reply 1):
Well unless there are any developments in the next 23 hours...we have an idea what their road map is going to be. Good luck to all.

Good luck to all is right. Lets just hope that this turns out to be another American success story and that it also jumpstarts the industry consolidation that everyone's always talking about. I for one love having as many airlines flying around as possible but if in the long run it makes the industry healthier and stabilizes wages then I'm all for it.

Ouboy79 it's commendable that you've been such a loyal US fan all these years. You must be rather excited that the US name will live on after the merger. You certainly have mellowed since your days as DFxxxxxxx on the old AOL airline message board ten years ago (I won't spell out your old screen name just in case it was you last name).
 
A330323X
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RE: US Airways Files Plan Of Reorganization

Fri Jul 01, 2005 11:45 pm

Two other things I forgot to mention.

GE (CFM) will be the engine supplier for the 2009-10 A32X deliveries, including those originally ordered by HP. (I expect that the several A32X to be delivered later this year as part of the HP order will have IAE engines, as it's probably too late to change the engine selection.) GE will also be the engine supplier for the A350s. It appears that Pratt will still engine the additional A330s (as makes sense for US).

Also, it seems that most of the A32X to be delivered later this year as part of the HP order will wind up in the US route system, not the HP route system.

Quoting Ouboy79 (Reply 3):
I would imagine the 330 option over the 350s provides for some insurance should the 350 not meet expectations.

I'm not really sure what to make of it, seeing as how they're allowed to cancel the A350 orders altogether if it doesn't perform as advertised, and order the B787 instead.

Quoting MasseyBrown (Reply 4):
There had been some talk that the common holders would be offered rights to buy new common, but I guess they have enough buyers for the new common to eliminate the need for any rights offering.

Yes, they still plan on a rights offering to raise $150 million. The rights will be offered to HP common stockholders and to US unsecured creditors. The price per share for the rights offering will be $16.50, the same as Wellington paid for its investment.

Quoting Ikramerica (Reply 5):
anyway, the fact that the A350 "orders" can be converted to A330s means that those who wanted to book those 20 orders despite the merger not even happening yet have another roadblock.

I don't know about that. After all, their existing A330 orders can be converted into A340 orders, but I don't see anyone complaining that they're not real A330 orders. And again, only 10 of A350s can be converted into A330s.
I'm the expert on here on two things, neither of which I care about much anymore.
 
ouboy79
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RE: US Airways Files Plan Of Reorganization

Sat Jul 02, 2005 12:05 am

Quoting N200WN (Reply 6):
Ouboy79 it's commendable that you've been such a loyal US fan all these years. You must be rather excited that the US name will live on after the merger. You certainly have mellowed since your days as DFxxxxxxx on the old AOL airline message board ten years ago (I won't spell out your old screen name just in case it was you last name).

It amazing what growing older and running a couple of start up companies can do for a person.  Smile It is exciting to see the US name survive, but even better the employees have some form of job security finally.

And yes that is my last name. LOL
 
cactusTECH
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RE: US Airways Files Plan Of Reorganization

Sat Jul 02, 2005 2:17 am

They will come out of 11 because HP and the other investors will inject enough money into US so they can merge in OCT.
 
Airplaneslover
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RE: US Airways Files Plan Of Reorganization

Sat Jul 02, 2005 12:06 pm

I am a huge fan of US. I hope to see some A340 in the system in the up coming years. I am wondering if CLT would get more or less frequency after the merger with HP? does anyone know?
 
cltguy
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RE: US Airways Files Plan Of Reorganization

Sat Jul 02, 2005 11:00 pm

CLT will remain about the same...It might get a few more frequencys to some cities and less frequencies to others...don't expect any drastic changes.
 
cactusTECH
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RE: US Airways Files Plan Of Reorganization

Sun Jul 03, 2005 1:53 am

I wonder what role JFK will paly after the merger, will we see any flights to PHL and CLT? as of OCT HP will no longer fly JFK-LAX which is doing very well now.

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