US Airways gets court approval on GE financing

By Jeff Pines

Washington, Dec. 16 - US Airways said it received court approval for a financing agreement with GE Capital Aviation Services and GE Engine Services that would give it access to $140 million of interim liquidity.

The agreement would have a bridge facility and defer aircraft debt and lease payments for six months. In addition, there would be cash savings on aircraft ownership and engine maintenance costs, US Airways said.

In addition, GE Capital Aviation Services will lease up to 31 new 70- and 90-seat regional jets to US Airways over the next three years, and Arlington, Va.-based US Airways would return 25 of its 281 mainline aircraft over the same time period.

In exchange, GE Capital Aviation Services would get a 15-year convertible note for between $125 million and $216 million, depending upon what lease options US Airways chooses.

US Airways filed for bankruptcy on Sept. 12 with the U.S. Bankruptcy Court for the Eastern District of Virginia. Its Chapter case number is 04-13819.

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