The independent agent tabulating the vote on US Airways` proposed plan of reorganization today filed its report with the U.S. Bankruptcy Court in Alexandria, which disclosed that sufficient votes in favor of the Plan have been received to confirm the Plan. The confirmation hearing is scheduled to commence on Tuesday, March 18, 2003.
The filing by Logan & Company, Inc., said that all necessary creditor classes of all eight debtors in the Chapter 11 cases had voted to accept the reorganization plan. The minimum acceptance rate by claim holders voting was 80.77 percent and by claim amount voting was 81.18 percent, well above the required two-thirds vote needed for approval.
The report includes all provisional ballots that were cast by claimants that had sought provisional approval of their claims for voting purposes, as well as acceptance of the reorganization plan filed by the Pension Benefit Guaranty Corporation (PBGC). The provisional and PBGC ballots remain subject to review and approval of the Bankruptcy Court, as does the voting report itself.
The company said that holders of the company`s common stock and subordinated securities claims will not receive anything under the reorganization plan and are deemed to have rejected the plan. The company will ask the Bankruptcy Court at Tuesday`s hearing to confirm the reorganization plan notwithstanding the cancellation of current equity interests and over the objections filed by individual creditors and shareholders.
Reporters needing additional information should contact US Airways Corporate Communications at (703) 872-5100.