US Airways gets extension to June 30 on ATSB agreement

By Jeff Pines

Washington, Jan. 13 - US Airways said the Air Transportation Stabilization Board agreed to extend the life of the airline's ability to use cash proceeds from its ATSB-backed loan to June 30 from Jan. 15.

The company has been operating with the use of ATSB cash collateral since its Chapter 11 filing on Sept. 12, 2004. The Alexandria, Va.-based airline presented the extension for bankruptcy court approval Thursday.

Details of the agreement will be filed with the court. The provisions are consistent with the previous agreement with the ATSB as well as the company's agreement with the General Electric Capital Aviation Services (GECAS) that it maintain minimum weekly cash balances and sufficient liquidity, the company said.

"We have worked very closely with the ATSB to provide them with solid information and assurances about the progress we have made in our restructuring," said Bruce Lakefield, US Airways' president and chief executive, in a press release.

"While we still have much work to do, I think our most difficult period is behind us and my sense is that our employees are united in working with us to complete the restructuring," said Lakefield. "This extension essentially builds us the necessary runway for a take-off this summer."

The airline filed for bankruptcy on Sept. 12, 2004. Its Chapter 11 case number is 04-13819.

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