(Archived Content)
US Airways, Inc. (US Airways) has announced that it has filed a petition for reorganization under Chapter 11 of the United States Bankruptcy Code. On July 10, 2002, the Air Transportation Stabilization Board (the Board) conditionally approved the application by US Airways for a Federal loan guarantee under the Air Transportation Safety and System Stabilization Act (the Act). The Board’s guarantee would cover $900 million of a proposed $1 billion loan. At the time the conditional approval was granted, the Board recognized the possibility of a Chapter 11 filing by US Airways.
The Board’s conditional approval of US Airways’ application for a Federal loan guarantee remains in effect subject to the conditions set forth in the Board’s July 10 letter to US Airways and to the bankruptcy court’s confirmation of a plan of reorganization. The Board will review the reorganization plan when presented and will determine whether it meets the conditions for issuance of a guarantee.
The Board, established as part of the Act signed into law September 22, 2001, consists of designees of Federal Reserve Board Chairman Alan Greenspan, Treasury Secretary Paul O'Neill and Transportation Secretary Norman Mineta. The designees are Federal Reserve Board Governor Edward M. Gramlich, Treasury Under Secretary for Domestic Finance Peter R. Fisher and Department of Transportation General Counsel Kirk K. Van Tine. David Walker, Comptroller General of the United States, is a non-voting member of the Board.