US Airways Group Inc. said Monday it reached a deal with Republic Airways Holdings Inc. and its majority shareholder Wexford Capital LLC on equity and financing that includes a $125 million investment when US Airways' gets out of Chapter 11 bankruptcy.
The deal also includes options for $110 million of other liquidity that would be available before the airline emerges from bankruptcy to help it restructure, US Airways said in a statement.
US Airways also said it plans to seek a two-week extension of the timeframe for it to file a reorganization plan without interference from third parties for two weeks to April 15.
US Airways hopes to emerge from its second trip through Chapter 11 in two years by the end of June.
The deal with Republic and Wexford is the second in recent weeks involving one of US Airways' feeder carriers. Air Wisconsin's financing arm, Eastshore Aviation, plans to loan US Airways $125 million to help it restructure. The financing can be converted into equity if the carrier steps out of court protection.
US Airways has been looking for at least $250 million in investments to help it emerge from bankruptcy.
Under the deal with Wexford, US Airways will enter into a new agreement with Republic for feeder service using regional jets.
