US Airways announces a new investment commitment worth USD 65 million
US Airways Group Incorporation has announced that they have received a $65 million financing commitment from asset management firm Tudor Investment Corporation. This amount is to reorganize the management at the airlines and get out of bankruptcy. The investor in return will get 3.9 million in newly traded US Airways shares in exchange for the investment.
Tudor Investment Corporation is owned by the Tudor Group, which is worth around USD 11 Billion in the market. US Airways is currently in the process of merging with the America West Airlines as part of their bankruptcy protection plans. After the merger is complete, the formed entity would be controlled by the Private investors who have committed more than $500 million to the effort.
The deal would be further boosted by investments worth USD 1.5 billion by suppliers and vendors in the company. These include the ACE Aviation Holdings Inc., PAR Capital Management, and Wellington Management Co. LLP. The newly formed merged airline company would fly under the brand name of US Airways and would be based at the America West’s headquarters in Tempe, Arizona.