US Airways Gets Loan Extension
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US Airways will have the cash it needs to keep flying through the end of June after a Bankruptcy Court judge approved a deal Thursday between the airline and the federal Air Transportation Stabilization Board.
An interim financing deal had been set to expire Saturday, but U.S. Bankruptcy Court Judge Stephen Mitchell granted an extension through June 30.
By then, the nation’s seventh-biggest carrier hopes it will have found a new investor to provide hundreds of millions of dollars needed to emerge from bankruptcy protection.
The extension comes after US Airways, a unit of US Airways Group Inc., extracted more than $800 million in annual concessions from its labor unions.
US Airways said it needed those savings to persuade the air transportation board to extend the financing agreement.
Under various deals with its creditors, US Airways is required to emerge from bankruptcy protection by June 30. Those deadlines could be extended.
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