Liquidation fears for US Airways
US Airways, which filed for protection from creditors yesterday, has pledged most of its assets, including cash, as collateral to a US board that gave the airline a $900 million loan guarantee last year, and to General Electric, which provided aircraft financing.
Without assets, the airline is unable to secure loans that companies usually arrange before filing for bankruptcy. “If they were to run short of cash, I would expect it would happen in the first quarter of next year,” said Philip Baggaley, an analyst at Standard & Poor’s.
