Attempts To Stay Sale Of TWA Assets Are Denied
 

ST. LOUIS (April 3, 2001) – Trans World Airlines Inc. was advised late Monday that Judge Peter Walsh of the United States Bankruptcy Court had denied motions to stay the sale of TWA assets to American Airlines. In a 35-page decision, Judge Walsh affirmed that the sale complied fully with the bankruptcy laws and noted that delaying the sale process with a stay order would put TWA at risk of liquidation, with the likely result of “material adverse harm to TWA’s diverse creditor constituencies and loss of enterprise value.” Judge Walsh also observed that the “the record is devoid of any evidence that the Objecting Parties would be better off if I issue a stay pending appeal.” He concluded that “there is a substantial public interest in preserving the value of TWA as a going concern and facilitating a smooth sale of substantially all of TWA’s assets to American.”

“While we expect Carl Icahn and the other objectors to continue with their various appeals, we also think that the sale will ultimately be upheld for the compelling reasons stated in Judge Walsh’s order. We are in the home stretch toward the closing of this transaction and it is very important that we not hit a roadblock at this point. As a result of the financial stress of operating under bankruptcy court protection, TWA’s cash position and overall financial situation remain precarious. A prompt closing of this transaction and transfer of ownership to American is essential to provide the maximum possible benefit to TWA’s creditors, to preserve 20,000 TWA jobs and to continue to serve the communities to which we fly,” said Kathleen A. Soled, senior vice president and general counsel.

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