US Airways, America West merger plan
Virginia, June 1:
A judge on Tuesday began outlining a roadmap for the proposed merger of US Airways and America West through the bankruptcy process, limiting to 30 days any potential competing bids.
Bankrupt US Airways Group Inc. sought the window to “shake the tree and see if there’s any higher, better offer.” The judge was also considering a proposed retention plan to stop
the exodus of US Airways’ management employees. US Airways, which filed for bankruptcy last year, has proposed a marriage with America West Holdings Corp, based in Tempe, Arizona, that would allow it to emerge from its second trip to bankruptcy court since 2002.
In another order on Tuesday, US bankruptcy judge Stephen Mitchell allowed a provision that either airline receive a $15 million breakup fee if either party walks away from the deal.