Bankruptcy court keeps US Airways flying
Bankrupt airline US Airways will continue to operate thanks to emergency funding, which has been approved by a court in Virginia today.
US Airways, the country’s sixth-biggest carrier, filed for Chapter 11 bankruptcy protection yesterday after making losses believed to total £1.4bn.
The court, which effectively operates as administrator to the company, ruled in favour of the use of $75m (£49m) in financing, allowing US Airways to pay suppliers, staff and contractors, and to maintain a reasonably full service.
The new money is part of a $500m debtor-in-possession financing package arranged by a group led by Credit Suisse First Boston and Bank of America.
The remainder of the funding will be decided at a 26 September follow-up hearing before the court.