US Air Files A Bankruptcy

The US Air, which was restructuring since May because of financial difficulties after the ‘9.11 terror,’ filed for bankruptcy protection at the East District Court of the State of Virginia on the 11th.

The US Air, which is 7th in America and 14th in the world, said after filing bankruptcy, “We are expecting to recover profits by reducing the costs, and we will continue the normal business during the bankruptcy processing period in the first quarter of 2003.”

The US Air ensured additional loan of 500 million dollars from its existing creditors including the Credit Swiss Boston Bank, and it will also receive 200 million dollars from other banks including the Texas Pacific Group.

The US Air has 7.81 billion dollars of asset and 7.83 billion dollars of liabilities. It made profits until 1999; however, after recording 166 million dollar loss in 2000, it recorded 2.124 billion dollar loss in 2001 since the business condition got excavated because of decrease of passengers due to the ‘9.11 terror.’ It recorded 517 million dollar loss for just the first half of the year. The US Air requested guarantee about the additional loan of 1 billion dollars from banks to the government, and received guarantee for 900 million dollars; however, it finally filed a bankruptcy.

konihong@donga.com