February 28, 2001 – Three companies have submitted bids for assets of
Trans World Airlines. Under the asset sale rules established by the United
States Bankruptcy Court, bidders were required to:
The bidders and a summary of their bids are as follows:
AMR Corporation (American Airlines) bid $500 million plus assumption of liabilities for substantially all of the assets (with $300 million designated for the non-Worldspan assets and $200 million designated for Worldspan). Under the rules of the auction, American was exempt from the cash deposit requirement by virtue of having provided TWA a debtor in possession financing facility of $200 million in January. American plans a news release with more details on its bid this afternoon.
Jet Acquisitions Group of Phoenix, Arizona, bid $889 million plus assumption of liabilities for substantially all of the assets (with $684 million designated for the non-Worldspan assets and $205 million designated for Worldspan). The Jet Acquisitions Group bid was submitted by J. Ralph Atkin, president. The notice address for Jet Acquisitions Group is: Jet Acquisitions Group, Inc., 6991 E. Camelback Rd., Suite B-305, Phoenix, AZ 85251.
Galileo International, L.L.C., bid $220 million for the Worldspan stake only. TWA notes that the terms of the Worldspan partnership agreement require that an acquirer hold an airline operating certificate and not hold an interest in a competing CRS system. To the best of TWA’s knowledge, Galileo does not hold an airline operating certificate, and is a competing CRS system. The notice address on Galileo’s bid is Galileo International, Inc., 9700 West Higgins Road, Rosemount, IL 60018.
TWA expects to confirm receipt of escrow deposits on Thursday morning, March 1. Bidders who have submitted bids and completed the escrow deposits will participate in the asset auction beginning at 10:00 a.m. EST on Monday, March 5, at the offices of Kirkland & Ellis, counsel to TWA, New York. A sale hearing to select the successful bidder or bidders is scheduled for Friday, March 9, at the United States Bankruptcy Court in Wilmington, DE.
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