Skybus disclosure statement approved; plan confirmation hearing April 14

By Jennifer Lanning Drey

Portland, Ore., March 5 - Skybus Airlines, Inc. obtained court approval of the disclosure statement for its plan of liquidation, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for April 14.

As previously reported, the plan calls for the liquidation of the company's remaining assets. The proceeds of the liquidation will be distributed to creditors through a liquidating trust.

Treatment of creditors will include:

• Holders of administrative claims, priority claims and priority tax claims will recover 100% in cash;

• Holders of secured claims, ticketholder claims and convenience claims will retain the rights to their claims for 100% recovery;

• Holders of general unsecured claims will receive a share of available cash for an estimated 78% recovery;

• Holders of preferred stock interests will receive a share of available cash only if all general unsecured creditors are paid in full; and

• Holders of common stock interests will receive no distribution.

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.

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