February 25, 1995 in Nation/World

Twa Revises Proposed Plan For Restructuring

Associated Press
 

Trans World Airlines Inc. on Friday filed a new financial restructuring plan that sweetens the terms for creditors and could help the struggling carrier avoid bankruptcy.

The revised offer was filed with the Securities and Exchange Commission. Noteholders have until midnight on April 7 to accept the offer, TWA spokesman John McDonald said.

The restructuring would head off a second trip to bankruptcy court for the cash-strapped airline, which employs about 22,000 people across the country.

Under the latest offer, creditors holding $225 million of notes paying 10 percent interest would get $170 million in new notes that pay 12 percent. They also would get equity rights that could be exchanged for common stock.

Creditors holding $338 million in 8 percent notes would get $100 million in preferred stock carrying a 12 percent coupon. They also would receive equity rights and $30 million to $50 million in airline tickets that could be resold.

TWA is also negotiating with its former owner and chairman, Carl Icahn, who is owed $190 million.

The financier and the airline have been discussing a plan under which he also would be repaid with airline tickets, McDonald said.

© Copyright 1995 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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