Midway Airlines liquidation expected to go on until July 2006 - report

Airline Industry Information, August 17, 2005

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Although about USD13m of the assets of Midway Airlines have been sold, most of the remaining USD140m claims from creditors will not be paid.

Midway Airlines was reportedly liquidated two years ago after orders from the US Bankruptcy Judge A. Thomas Small. At the time (October 2003) the airline had been struggling for 26 months to reorganise. Since the liquidation order the airline's eight regional jets, leases and parts have been divested for about USD12.9m and combined with funds and fees that were recovered. According to a court report from 25 July, USD20.59m has been raised to repay creditors.

It has been estimated that there are outstanding administrative claims in excess of USD25m and also an estimated USD115m owed to more than 1,000 other creditors, The Associated Press reported. Joseph Callaway, an attorney appointed to deal with the remaining assets, has said that he does not expect to settle the case until July next year.

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