TWA Scraps Most of Plan to Buy Back Debt

The Mount Kisco, New York-based carrier said it was halting the debt-repurchase plan initiated more than two months ago because "substantial progress" was being made in negotiations with creditors who hold the securities. The original buy-back offer was for seven TWA securities, much of it...

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Bibliographic Details
Published inThe Wall Street journal Asia
Main Author By Brett Pulley and Robert Johnson
Format Newspaper Article
LanguageEnglish
Published Victoria, Hong Kong Dow Jones & Company Inc 24.07.1991
Subjects
Airlines
Bankruptcy
Bankruptcy reorganization
Debt restructuring
Litigation
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Summary:The Mount Kisco, New York-based carrier said it was halting the debt-repurchase plan initiated more than two months ago because "substantial progress" was being made in negotiations with creditors who hold the securities. The original buy-back offer was for seven TWA securities, much of it junk bonds issued when TWA Chairman Carl Icahn took the airline private in 1988. The TWA move "is vintage Icahn," added Alexander Greene, a securities analyst who follows TWA. But while he's pursuing Pan Am, Mr. Icahn "has got to be mindful of the TWA creditors." Despite such warnings of a Chapter 11 federal bankruptcy-law filing for his own ailing airline, Mr. Icahn is proceeding with his offer, made Sunday, to purchase Pan Am, which has been in Chapter 11 since January. The bid, which would involve a two-part plan that includes selling portions of Pan Am's assets to AMR Corp.'s American Airlines, was greeted with skepticism about Mr. Icahn's motives.
ISSN:0377-9920