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News > Companies
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US Airways defers payments
Sixth-largest U.S. air carrier to defer debt payments on grounded planes and other older models.
July 1, 2002: 4:10 PM EDT

NEW YORK (CNN/Money) - US Airways Group Inc. said Monday it would begin deferring payments on public debt related to some aircraft as the commercial carrier continues restructuring to revive the business.

US Airways, the sixth-largest U.S. air carrier, said last week that it would defer payments to some lessors and lenders of the aircraft, mostly older Boeing planes and planes that have already been grounded.

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The Arlington, Va.-based carrier said it is negotiating with creditors to reduce and restructure existing loan agreements. US Airways said the payment deferrals do not reflect its cash position, and that it plans to continue paying its other day-to-day expenses and debts. It does not expect operations or customer service to be affected.

The airline also said Monday that it told the government which lenders have agreed to put up a $100 million "at risk" portion of a $1 billion loan. The at-risk portion would not be covered by a prospective $900 million federal loan guarantee that the airline applied for last month.

Moody's Investors Service cut its credit ratings on US Airways Group and its subsidiaries last week, and said it might cut them further, after the airline announced its unilateral decision to defer payments to lenders and lessors.  Top of page


--from staff and wire reports






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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.