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Published on 7/8/2005 in the Prospect News Distressed Debt Daily.

US Airways temporary injunction request denied

By Caroline Salls

Pittsburgh, July 8 - Freeman Enterprises' request for a temporary injunction blocking the sale of any assets of US Airways, Inc. until the court renders a decision on the sale or plan of reorganization of US Airways was denied, according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

In the order, the court said the motion does not prove that Freeman has the authority to seek the injunction, nor that the motion has been served to the company, its official committee of unsecured creditors or any other party.

"The motion does not identify any pending or intended disposition of the debtors' assets, and the court can only speculate that the motion is some form of response or objection to the announced merger transaction of [US Airways] with America West Holdings Corp.," the filing said.

Also, according to the filing, an injunction must be initiated by a complaint, not a motion, and the motion was signed by Sallijo Freeman, who is not an attorney and provided only her e-mail address.

Freeman Enterprises is not listed as a creditor of US Airways and has not filed a claim.

US Airways, an Arlington, Va.-based carrier, filed for bankruptcy on Sept. 12, 2004. Its Chapter 11 case number is 04-13819.


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