September 23, 2005
js2942

ATSB to Explore Remarketing of Loans and Sale of Warrants

The Air Transportation Stabilization Board welcomes the confirmation of US Airways' Plan of Reorganization by the Bankruptcy Court last week and supports its planned exit from Chapter 11 and merger with America West Airlines.  The Board has worked with both US Airways and America West to restructure their existing guaranteed loans to be compatible with the new business plan of the combined companies (New US Airways). 

The Board is working with a financial advisor to assess the remarketing of the two loans to private investors without the government guarantee and to gauge the marketability of the Board's warrant to purchase shares in New US Airways.  The ATSB is receiving the warrant in exchange for the original warrant obtained as part of the compensation to the Government for the loan guarantee provided to America West in 2002.  In addition, the Board is exploring strategies to sell its remaining warrants in World Airways and Frontier Airlines.