Subject:  US Airways reaches GE deal-report |
Author:
angryinvestorr
|
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: 10:52:58 01/05/03 Sun
US Airways reaches GE deal-report
By Jon Friedman, CBS.MarketWatch.com
Last Update: 12:58 PM ET Jan. 5, 2003
NEW YORK (CBS.MW) - US Airways has struck a deal with General Electric's GE Capital Corp. division that would give the bankrupt airliner another infusion of emergency financing, according to a published report.
CBS MARKETWATCH TOP NEWS
Stolen plane lands safely in Frankfurt
When will the clouds clear over Wall Street?
Stocks ramp up next week with economic data, earnings
Conference may shed light on outlook for biotech
Free! Sign up here to receive Bambi Francisco's Net Sense e-newsletter!
TRACK THESE TOPICS
My Portfolio Alerts
Company: US Airways Group Inc Add
Create
Company: General Electric Company Add
Create
Get Breaking News sent directly to your inbox
Create A Portfolio | Create An Alert
The deal with US Airways (UAWGQ: news, chart, profile) gives GE's (GE: news, chart, profile) financial unit a stake in the airline after it comes out of bankruptcy, Reuters reported, citing a court filing.
GE Capital will provide up to $120 million in financing to assist US Airways in running its business during bankruptcy if the carrier's bankruptcy court judge, Stephen Mitchell, sanctions the agreement.
The Retirement Systems of Alabama, UAL's main investor, has already agreed to contribute $500 million in this kind of financing.
The GE financing operation would also arrange $360 million in funding for the carrier after it completes its restructuring, and it would provide an additional $350 million of equity to introduce leases on regional jets that US Airways wants to bring to its fleet.
In return, GE Capital will get 3.8 million shares of preferred shares and warrants to purchase up to a 5 percent stake in Arlington, Va.-based US Airways after it emerges from bankruptcy.
The Retirement Systems of Alabama is poised to get more than a 36 percent stake in the airline as part of the restructuring and US Airways' workers will be given a 38 percent stake.
US Airways said in a Dec. 27 court filing that GE Capital, which had been involved in the financing of 111 of the airliner's airplanes before it filed for bankruptcy protection, was one of the few financial organizations that could offer an ample amount of financing for the acquisition of regional jets.
The first portion of GE Capital's loan to US Airways would be drawn down on Jan. 27 to help it keep the airline in business.
Jon Friedman is media editor for CBS.MarketWatch.com in New York.
Latest Industry News Get Alerted on News in this Industry
•Stolen plane lands safely in Frankfurt 11:27am ET 01/05/03
•Report: United could shift to network of smaller jets 5:46pm ET 01/04/03
•United to lay off 1,500 more workers 6:34pm ET 01/03/03
•December traffic data lifts airline stocks 4:53pm ET 01/03/03
•Net's No. 1 Webcaster pulling plugs 10:38am ET 01/03/03
FREE CBS MarketWatch Membership
Like what you see on our site? CBS MarketWatch has even more to offer. Become a member and get FREE access to benefits including My Portfolio Tracker, Advanced Charting tools, e-Newsletters with expert commentary, Stock Price Alerts, and archived articles. Join today! Signing up is quick, easy and FREE! Click here.
Trading Center
Trade Here!
Trade Here!
TradeHere!
TradeHere!
TradeHere!
Front Page | Message Boards | Mobile | MarketPlace | Free Membership
Feedback | Letters to the Editor | Site Index | Company Info | Jobs | Advertising Media Kit | Licensing
Make CBS.MarketWatch.com your Home Page
MarketWatch.com is traded on the Nasdaq stock exchange under the symbol MKTW.
Partner Sites
CBSNews.com | CBS.com | FT.com | BigCharts.com
© 1997-2003 MarketWatch.com, Inc. All rights reserved. Disclaimer. See our Privacy Policy - updated 6/25/02.
CBS and the CBS "eye device" are registered trademarks of CBS Broadcasting, Inc.
Intraday data provided by S&P Comstock and subject to terms of use.
Historical and current end-of-day data provided by FT Interactive Data.
Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges.
SEHK intraday data is provided by S&P Comstock and is at least 60-minutes delayed.
All quotes are in local exchange time.
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
| |
Feedback: 