US Airways Refinances Loans
US Airways Group Inc., which exited bankruptcy last month, said Wednesday it refinanced $777 million in loans that were mostly backed by the U.S. government, concluding federal aid that began after the Sept. 11, 2001, terrorist attacks.
The U.S. Air Transportation Stabilization Board, set up to administer aid after the attacks, received a $2.5 million premium on the sale to 13 investors, US Airways and the federal agency said. The board had guaranteed $752 million of the loans. US Airways declined to identify the purchasers.
The loans are no longer government-backed and “free the taxpayers of the risk,” said Taylor Griffin, a board spokesman. ATA Holdings Corp. and World Air Holdings Inc. are the only carriers left with U.S.-backed loans, he said.
Source: Pittsburgh Tribune-Review.
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