US Airways won bankruptcy court approval today allowing it to proceed with the aircraft leasing, financing, and engine services agreement, with GE Capital Aviation Services, and GE Engine Services, the company annouced today. The agreement provides US Airways with $140 million in interim liquidity through a new bridge facility and the deferral of aircraft debt and lease payments coming due over the next six months, as well as annual cash savings on aircraft ownership and engine maintenance costs.
In exchange, upon successful emergence from Chapter 11, US Airways would issue to GECAS a 15-year convertible note for between $125 million and $216 million, depending on future lease options selected by US Airways, the company added in its release.
