US Airways agrees $125 million finance package

US Airways agrees $125 million finance package

   US Airways Group Inc. said it has reached a $125 million agreement with an investor group to fund its restructuring under bankruptcy protection.

   Eastshore Aviation LLC agreed to a $125 million financing commitment to provide equity funding for US Airways’ plan of reorganization.

   The $125 million debtor-in-possession facility, which is subject to bankruptcy court approval, will be drawn in the amount of $75 million and two subsequent $25 million increments. Upon US Airways’ emergence from Chapter 11, the $125 million financing package would then convert to equity in the reorganized company, US Airways said.

   Eastshore Aviation is an investment group owned by the privately held regional airline Air Wisconsin Airlines Corp., and shareholders. As part of this agreement, US Airways and Air Wisconsin will enter into an air services agreement under which Air Wisconsin can provide regional jet service under the US Airways Express brand.

   “This agreement with Eastshore Aviation provides the cornerstone from which we can obtain additional financing and construct a plan of reorganization,” said Bruce R. Lakefield, US Airways president and chief executive officer.