US Airways gets creditor approval for reorganization plan

By Carlise Newman

Chicago, March 17 - US Airways said its reorganization plan received sufficient approval from creditors Monday after the voting report was filed with the U.S. Bankruptcy Court in Alexandria, Va. The confirmation hearing is scheduled for March 18.

The company said that holders of the company's common stock and subordinated securities claims will not receive anything under the reorganization plan and therefore says it is likely they will reject the plan. However, US Airways will ask the bankruptcy court at Tuesday's hearing to confirm the plan, despite the cancellation of current equity interests and over the objections filed by individual creditors and shareholders.

The voting filing by agent Logan & Co. Inc. said that all necessary creditor classes of all eight debtors in the Chapter 11 cases had voted to accept the reorganization plan. The minimum acceptance rate by claim holders voting was 80.77 % and by claim amount voting 81.1%, more than the two-thirds necessary for approval.

The report includes all ballots that were cast by claimants that had sought provisional approval of their claims for voting purposes, as well as acceptance of the reorganization plan filed by the Pension Benefit Guaranty Corporation. The provisional and PBGC ballots remain subject to review and approval of the bankruptcy court, as does the voting report itself.

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