Skybus hearing on settlement with Airbus continued to undetermined date

By Jennifer Lanning Drey

Portland, Ore., Oct. 20 - Skybus Airlines, Inc.'s hearing for approval of a settlement agreement that would allow the company to reject its aircraft purchase agreement with Airbus was continued indefinitely by the U.S. Bankruptcy Court for the District of Delaware, according to a source familiar with the case.

Under the settlement, Skybus has agreed to reject the purchase agreement and pay $3.75 million to Airbus North America to completely satisfy Airbus' pre-bankruptcy and post-bankruptcy claims against Skybus.

If approved, Airbus will also keep $3.84 million in pre-delivery payments it received under the purchase agreement.

Skybus was a Columbus, Ohio-based airline. The company ceased operations and filed for bankruptcy on April 5, 2008. Its Chapter 11 case number is 08-10637.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.