US Airways Says It May Be Forced to Liquidate
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From Associated Press
US Airways Group Inc. warned in a Bankruptcy Court filing that it might have to liquidate by February unless a judge imposes a temporary 23% pay cut on its union employees.
The airline has asked Judge Stephen Mitchell to impose the pay cuts by Oct. 14 at the latest. Mitchell has scheduled an Oct. 7 hearing on the issue.
Without the reductions, the airline’s cash reserves will drop so low by February that its lenders will probably withdraw the financing that has allowed the company to operate while in bankruptcy protection, US Airways said.
