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Published on 2/1/2005 in the Prospect News Distressed Debt Daily.

US Airways agrees to revised terms with Embraer

By Ted A. Knutson

Washington, Feb.1 - US Airways Group, Inc. has agreed to new financing terms with one of its aircraft suppliers, Empresa Brasileira de Aeronautica S.A., Embraer.

Highlights of global settlement agreement appear in an 8-K filing with the Securities and Exchange Commission.

The Arlington, Va.-based carrier applied for bankruptcy Sept. 12 in the U.S. Bankruptcy Court for the Eastern District of Virginia. Its Chapter 11 case number is 04-13819.


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